TheOslo-listed company announced Friday that it had teamed up with affiliates ofBreakwater Capital and Oak Hill Advisors.
Inaddition, Odfjell said it has exercised its option to build four more 22,000-cbmLPG/ethylene gas carriers at China’s Nantong Sinopacific.
The ships are costing $50m each, or $200m intotal, with deliveries scheduled for between September 2016 and June 2017.
Breakwaterand Oak Hill have jointly agreed to invest about $50m as consideration for a 50%equity interest in Odfjell’s LPG/ethylene business.
Further, Odfjell and its partners have eachagreed to commit about $50m to finance the growth of the joint venture.
Odfjell re-entered the LPG/ethylene segment in 2012 withthe purchase of the 9,000-cbm Bow Gallant (built 2009) and Bow Guardian (built2008).
Last year it took thingsup a gear when it ordered four 17,000-cbm LPG ships with ethylene capacity at Nantong Sinopacific plus four options of either 17,000-cbm or 22,000-cbm.
Speaking in Odfjell’s recently released annual reportchief executive Jan Arthur Hammer said the orders had “brought strongerinterest in our venture both by customers, investors and potential partners”.
“We remain committedtherefore, in our plans to develop Odfjell Gas into a major operator in thehandysize segment of the LPG/Ethylene market.”
Completion of thejoint venture agreement is subject to customary conditions, but is expected tobe completed within the next three months.
SEB has acted as solefinancial advisor and Thommessen has acted as legal counsel to Odfjell. Reed Smith LLP has acted as legal counsel to Oak Hill Advisors.
