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Sells marine services segment for USD$1.1b to DOF

TRANSPORTATION
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  • DOF Group will acquire Maersk Supply Service (MSS) for USD $1.1b made up of USD 577m in cash and rest in new shares issued by DOF (see pressor here). MSS provides marine services & project solutions for offshore energy sectors and is a subsidiary of the Maersk group.
  • DOF has no public bonds outstanding and it won't issue for this instead using a USD500m debt facility provided by some banks and a equity raise of new shares.
  • Maersk BS has gotten some positive catalysts recently; first from it pulling out of ~€14b DB Schenker bid and now from small sale here. It's already sitting on a USD 3.1b net cash position (incl. lease liabilities) helped by its over $7b cash pile.
  • We still see the curve as tight and see better value outside the (cyclical) sector.
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  • DOF Group will acquire Maersk Supply Service (MSS) for USD $1.1b made up of USD 577m in cash and rest in new shares issued by DOF (see pressor here). MSS provides marine services & project solutions for offshore energy sectors and is a subsidiary of the Maersk group.
  • DOF has no public bonds outstanding and it won't issue for this instead using a USD500m debt facility provided by some banks and a equity raise of new shares.
  • Maersk BS has gotten some positive catalysts recently; first from it pulling out of ~€14b DB Schenker bid and now from small sale here. It's already sitting on a USD 3.1b net cash position (incl. lease liabilities) helped by its over $7b cash pile.
  • We still see the curve as tight and see better value outside the (cyclical) sector.