Join our crew and become one of the 104,565 members that receive our newsletter.

dfds-ferry-denmark

Danish DFDS To Buy Turkish U.N. Ro-Ro in $1.2 billion deal

Reuters
Total Views: 15
April 12, 2018

KLAIPEDA, LITHUANIA: DFDS Ferry in Klaipeda harbor. Photo by A. Aleksandravicius, Shutterstock

by Teis Jensen (Reuters) – Danish shipping and logistics company DFDS has agreed to buy Turkish freight shipping operator U.N. Ro-Ro from Turkish private equity firms Actera Group and Esas Holdings for 950 million euros ($1.17 billion) on a debt-free basis.

It marks a change of course for the Turkish company, which had planned an initial public offering for up to 57.7 percent of the company, a draft prospectus showed last month.

U.N. Ro-Ro operates five freight shipping routes between Turkey, Italy and France.

DFDS said U.N. Ro-Ro’s freight market was “one of Europe’s most attractive” and that it was operationally similar to northern Europe, where DFDS does most of its current business.

It marks a change of course for the Turkish company, which had planned an initial public offering for up to 57.7 percent of the company, a draft prospectus showed last month.

U.N. Ro-Ro operates five freight shipping routes between Turkey, Italy and France.

DFDS said U.N. Ro-Ro’s freight market was “one of Europe’s most attractive” and that it was operationally similar to northern Europe, where DFDS does most of its current business.

The Lauritzen Foundation, which holds 42 percent of DFDS’s share capital, has confirmed its intention to participate pro rata in a share issue, DFDS said.

For 2018, U.N. Ro-Ro expects revenue of 240 million euros ($297 million) and core profit (EBITDA) of 97 million euro, DFDS said.

Actera and Esas Holding had acquired the 98.8 percent stake, that DFDS now plans to buy, from private equity firm KKR & Co LP (KKR.N) for an undisclosed sum in 2014.

Dynasties of the Sea
Related Book: Dynasties of the Sea: The Shipowners and Financiers Who Expanded the Era of Free Trade

DFDS said the ratio between its net interest bearing debt and its core profit (EBITDA) is expected to rise to around 2.5 after the deal and the share issue. That would be in line with its targeted ratio of between 2.0 and 3.0.

 

DFDS also changed its financial forecast for 2018 as a consequence of the deal and now expects revenue to grow by 8 percent and EBITDA before special items of between 3.0 billion and 3.2 billion Danish crowns.

Reporting by Teis Jensen; editing by Jacob Gronholt-Pedersen and Adrian Croft, ©2018 Reuters

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,565 members delivered daily straight to your inbox.

Join Our Crew

Join the 104,565 members that receive our newsletter.