Danish Shipping Company Raises USD160 million shares

A Danish shipping and logistics company, DFDS, has raised USD 160 million via a private placement of shares.

The investors have subscribed for 2,631,578 of new shares at an offer price of DKK 380 per share, raising gross proceeds of approximately DKK 1.0 bn.

“As the offering was oversubscribed by Danish and international professional and institutional investors compared to the targeted gross proceeds of approximately DKK 1.0bn, the shares have been allocated on an individual basis,” DFDS said.

The company said that the net proceeds would be used to help finance the acquisition of U.N Ro-Ro, the planned fleet renewals in both DFDS and U.N. Ro-Ro and for potential investment opportunities during the next 12-18 months.

In April 2018, DFDS announced an agreement to acquire 98.8 per cent of Turkey’s largest operator of freight shipping routes, U.N. Ro-Ro.

The company will acquire U.N. Ro-Ro from Turkish private equity firms Actera Group and Esas Holdings for EUR 950 million (USD 1.17 billion) on a debt-free basis, which will be mainly funded through committed debt financing.

The move came on the back of an investment in two combined freight and passenger vessels (RoPax) which are intended for the company’s Baltic routes.

The ships will be built by Guangzhou Shipyard International (GSI) and are expected to be delivered in Q1 and Q3 2021.

DFDS closed the first quarter of the year with 8 per cent higher revenue year-on-year standing at DKK 3.5bn. Profit before tax for the period stood at DKK 204 million, up 18.1 per cent year-on-year.

“Both growth and earnings were ahead of expectations in Q1 and our full-year growth expectation is now raised to 4 pct and to 10 pct including U.N. Ro-Ro. European growth is robust and continues to support our ferry routes and logistics activities. Our continuous improvement projects are on track and will also contribute to earnings this year,” Niels Smedegaard, CEO of DFDS, said.