Norwegian chemical tanker owner Odfjell has spent $19m to increase its stake in a South Korean chemicals terminal.
The company said it had reached an agreement with partner Lindsay Goldberg (LG) to acquire its indirect 24.5% shareholding in Odfjell Terminals Korea (OTK).
Odfjell will now have a 50% share of the venture, with domestic company KPIC having the rest.
OTK generated Ebitda of $2.2m and a net profit of $0.7m in 2019, based on Odfjell's previous 25.5% slice.
Chief executive Kristian Morch said: "OTK is a high-quality terminal and represents a good fit with our strategy for Odfjell's terminal division.
Restructuring milestone
"As such, this is another milestone in completing the restructuring of our terminal portfolio and our strategy to focus on chemical terminals where we can harvest synergies with Odfjell Tankers or have another angle for further value creation by Odfjell."
The move reverses a trend of divestment of terminals by Odfjell.
In May, a joint venture controlled by the tanker owner raised $59m after disposing of its stake in another Chinese terminal.
Odfjell and LG agreed to sell their 50% shareholding of Odfjell Terminals (Dalian) to VTTI Group.
Last July, the company banked $46m from selling an indirect holding of 55% in a Jiangyin terminal to Yangzijiang Shipbuilding (Holdings).
The move followed the sale by LG of its own stake in the terminal.
LG has been Odfjell's joint venture partner in OTBV's US and European terminals since 2011.
In 2013, this was expanded to include OTBV's global terminal operations.
In 2018, Odfjell completed the sale of its 50% stake in a Singapore terminal for $150m to Macquarie.
