Octopus Bidco AS, a company owned by funds advised by American investment company Kohlberg Kravis Roberts & Co. L.P. (KKR) and its affiliates, has initiated the process to acquire Norwegian shipowner Ocean Yield ASA.
As informed, the duo agreed that Octopus Bidco will launch a voluntary offer for all outstanding shares in Ocean Yield for a cash consideration of NOK 41.00 per share. The offer price implies a total consideration for all the Shares of approximately NOK 7.2 billion (about $831.7 million).
Aker Capital AS, a subsidiary of Aker ASA, holds 61.65% of the shares in Ocean Yield. Aker Capital has decided to accept the offer for all its shares on the first day of the offer period.
The sale will result in app. NOK 4.4 billion ($509.4 million) cash release to Aker which will be deployed in further investments in current and new business opportunities.
“Aker has been the driving force behind the development of Ocean Yield since it established the company in 2012. The company has since 2012 grown its fleet significantly from 3 to 63 vessels,” Øyvind Eriksen , President and CEO of Aker, commented.
Aker Capital has further entered into an agreement with Octopus Bidco for the sale of its 50% ownership interest in a joint venture with Ocean Yield holding four LR2 product tankers with long-term charters to the Navig8 Group.
Octopus Bidco will pay $5.1 million to Aker Capital for the shares in the joint venture.
“We have been impressed by what Ocean Yield’s management team and employees have achieved since the company was formed a decade ago through the strategy of investments in modern fuel-efficient vessels on long-term charters,” Vincent Policard , Partner and Co-Head of European Infrastructure at KKR, said.
“KKR is excited at the idea of becoming a strategic partner to Ocean Yield’s management team to continue building a … ship-leasing company to the benefit of all stakeholders, including by providing improved access to long-term capital to meet the substantial investment needs of the sector.”