Norwegian, German regulators approve Octopus Bidco’s Ocean Yield acquisition

Octopus Bidco AS, a company owned by funds advised by American investment company Kohlberg Kravis Roberts & Co. L.P. (KKR) and its affiliates, has received clearance from the Norwegian Competition Authority and the German Federal Cartel Office to acquire Norwegian shipowner Ocean Yield ASA.

Ocean Yield
Illustration. Image Courtesy: Kees Torn on Flickr under CC BY-SA 2.0 license

As informed, the regulatory approvals condition to the offer has been fulfilled.

To remind, Octopus Bidco AS initiated a process in September 2021 to acquire all outstanding shares in Ocean Yield ASA for NOK 41 ($4.81) per share.

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The offer price implies a total consideration for all the shares of approximately NOK 7.2 billion (about $831.7 million).

Earlier this month, Aker Capital AS, the largest shareholder of Ocean Yield representing 61.65 per cent of the outstanding shares in the company, has irrevocably accepted the offer. The offeror accordingly passed the 61.65 per cent minimum acceptance condition.

Completion of the offer remains subject to the fulfillment or waiver by the offeror of the conditions for closing of the offer, other than the regulatory approvals condition and the minimum acceptance condition.

Shareholders that want to accept the offer must fill out and return the acceptance form by 5 November 2021, according to the company.

Ocean Yield splashes $380 million on fleet expansion

In a separate statement, Ocean Yield revealed it entered into a term sheet to invest in vessels with a total purchase price of $380 million.

The vessels have an average age of about five years, and will be on 10-year bareboat charters with purchase obligations at the end of the charter period.

No further details have been disclosed.

The investment is said to be in line with Ocean Yield’s investment policy. The conclusion of the deal remains subject to agreement on full documentation.

Ocean Yield’s total fleet — comprising tankers, containerships, car carriers, and other vessel types — counted 63 vessels at the end of the second quarter of 2021, including wholly and partly owned vessels.