DFDS is expanding into the Mediterranean with a €950M purchase of Turkish ro-ro company
Copenhagen (Reuters): Danish shipping and logistics group DFDS has agreed to acquire Turkish freight shipping operator UN Ro-Ro from Turkish private equity firms Actera Group and Esas Holdings for 950 million euros ($1.17 billion) on a debt free basis.
DFDS’ Board has decided to terminate the company’s current share buyback programme and suspend planned dividends. It also recommends a share issue of Dkr1B (US$166M) for financing, which otherwise consists of committed term loan financing.
The transaction is subject to approvals from the Danish, Turkish, German, Austrian and Italian competition authorities.
The last three are involved because the transaction includes UN RoRo’s strategic 60% stake in Samer Seaports & Terminals Srl in the Port of Trieste, which has become the main hub for Turkish unaccompanied ro-rail shipments right the way through to Scandinavia. This also means that DFDS can increase its clout in the Baltic.
UN Ro-Ro operates five routes in the Mediterranaen between Turkey and the EU.