Yangzijiang buys Odfjell Chinese terminal stake for $46m

Chinese shipbuilder Yangzijiang Shipbuilding has diversified into terminal ownership after it acquired a 55% equity interest in Odfjell Terminals (Jiangyin) Company for approximately $46.23m.

The asset offload by Norwegian firm Odfjell is due to its venture partner Lindsay Goldberg’s decision to dispose of its interest in Odfjell’s Asian terminals. Odfjell said it decided to “tag along” on Lindsay Goldberg’s sale of its indirect shareholding in the China terminal.

Odfjell said it expects to make a net proceed of around $21m from the asset sale.

Kristian Mørch, ceo of Odfjell, said: “This divestment is in line with our strategy to grow and focus on chemical terminals in locations where we can harvest synergies with Odfjell Tankers.”

Odfjell Terminals (Jiangyin) Company owns and operates a tank terminal which handles various types of petrochemical products and provides terminal services for petrochemical distribution in the upstream Yangtze River region.

Singapore-listed Yangzijiang stated that the acquisition was “wholly satisfied in cash and was funded by the group’s internal resources.”

While Yangzijiang did not specify the reason for venturing into onshore terminals, its executive chairman Ren Yuanlin is known for steering his company in different directions depending on current and his projections of future market conditions.

Yangzijiang, which maintains its core business in building dry bulk vessels and containerships, has ventured into investment holdings, vessel leasing, micro-financing, rig building and even mining.

Odfjell, meanwhile, has been offloading its stake in terminals in Oman, Singapore and Rotterdam over the past three years.

Following the latest deal, Odfjell continues to operate terminals in Antwerp in Belgium, Charleston and Houston in the US, Ulsan in South Korea, and Dalian and Tianjin in China.

Posted 17 July 2019

© Copyright 2019 Seatrade Informa Markets. Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade Informa Markets.

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Lee Hong Liang

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Asia Correspondent Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets. Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

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