Wilhelmsen, Wallenius Merge to Form New Shipping Platform
- Business & Finance
Norwegian rolling cargo shipping specialist Wilh. Wilhelmsen Holding (WWH) and Norwegian/Swedish shipping company Wallenius have signed a letter of intent to establish a new ownership structure for their jointly owned investments.
Under the letter of intent, the parties will combine their ownership in the jointly owned entities Wallenius Wilhelmsen Logistics (jointly owned 100%), EUKOR Car Carriers (jointly owned 80%) and American Roll-on Roll-off Carrier (jointly owned 100%) in a new entity to be named Wallenius Wilhelmsen Logistics ASA.
Furthermore, the parties have agreed to merge the ownership of the majority of their vessels and affected assets and liabilities.
“In addition to establishing a common owner and governance structure, the proposed merger is expected to enable synergies between USD 50-100 million by combining the assets and harvesting economies of scale, including more optimal tonnage planning, and administrative, commercial and operational efficiencies between the entities,” Jan Eyvin Wang, president and CEO of Wilh. Wilhelmsen ASA, said.
Wallenius Wilhelmsen Logistics ASA will be based on the existing listing of Wilh. Wilhelmsen ASA and continue to be listed on the Oslo Stock Exchange.
When the transaction is completed, Wilh. Wilhelmsen Holding ASA and Wallenius Lines AB will have equal ownership in the new entity and plan to own approximately 40% each. The final terms and ownership level will be confirmed within year-end, the companies said.
The proposed transaction is expected to close within in the first quarter of 2017.