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Akastor and Mitsui to expand partnership

Akastor and Mitsui agree to form offshore JV

Jun 19, 2018
1 min read
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Akastor has entered into a share purchase deal with Mitsui to form a joint venture by selling off a stake in subsidiary AKOFS Offshore to the Japanese firm.

Mitsui and its shipping offshoot Mitsui OSK Lines will each gain a 25 per cent shareholding in AKOFS for a total stake of 50 per cent through a $142.5 million cash payment under the agreement, which follows an earlier memorandum of understanding signed between the companies.

As part of the deal Mitsui has secured preferential rights linked to the operation of AKOFS Seafarer.  This will give guaranteed preferred return to Mitsui and MOL during the first six years of operations, limited to about US$46 million.

Akastor may also claim earn-out payments during the first seven years of operations, limited to $45 million.

The JV deal is set to close in the third quarter of this year, subject to customary regulatory approvals.

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