Norwegian supply shipping company DOF Group has agreed to buy offshore marine service provider Maersk Supply Service (MSS) from Maersk Supply Service Holding (MSSH) for $1.11 billion in a cash and stock deal, it said on Tuesday.
As part of the deal, DOF will pay $577 million in cash and issue new shares. MSSH, a subsidiary of A.P. Moeller Holding, will own 25% of DOF’s shares following the transaction, the statement said.
DOF added that it will implement the deal through a new subsidiary, DOF Offshore Holding Denmark ApS.
The combined company will operate under DOF’s name and will be listed on the Oslo Stock Exchange, the statement said, adding that it expects the deal to close during the fourth quarter of this year.
DOF said it intends to finance the deal through a $500 million debt facility and will raise up to $125 million in equity. The transaction does not include MSS’ operations in Brazil, it added.
“The announced transaction today marks a strategic milestone for the DOF Group, driven by a strong industry rationale and a shared vision with A.P. Moller Holding, who will indirectly become a major shareholder,” said DOF CEO Mons Aase.
Maersk agreed to sell Maersk Supply Service to family-owned A.P. Moller Holding for $685 million in 2023.
Source: Reuters.com