Norway-based shipping and tank terminal company Odfjell’s joint venture company Odfjell Terminals (OTBV) has signed an agreement to sell its 29.75% indirect stake in Oiltanking Odfjell Terminals & Co (OOT) in Oman for around $130m.
OTBV owns and operates all of Odfjell’s tank terminals across the globe.
With the transaction, OTBV will achieve net gain of around $90m.
Odfjell CEO and Odfjell Terminals chairman Kristian Mørch said: "We are pleased to have concluded on the sale of our Oman terminal at what we believe is a very attractive valuation and is a testimony to the strength and quality of the investments made in Oman since 2008.”
Odfjell Terminals CEO Frank Erkelens said: “We appreciate the cooperation we have had with our good partners in Oman, and wish them a successful future further developing the full potential of the terminal.
“This divestment is in line with our strategy to focus on the terminals where we have managerial control of the assets and to further invest in growth opportunities in our core markets, such as Houston and Rotterdam.”
Odfjell said that closing of the transaction is subject to customary regulatory approval.
Odfjell Terminals is a joint venture between Odfjell (51%) and Lindsay Goldberg (49%), which owns ten terminals worldwide that have a combined storage capacity of 4.8 million cubic metres.
The key activities of the company are storage and distillation of bulk liquid products.