Varma and OP Finland to invest in ESL Shipping
Published by Oliver Kleinschmidt,
Editorial Assistant
Dry Bulk,
Varma Mutual Pension Insurance Co. has agreed to co-invest €15 million alongside OP Finland Infrastructure LP in ESL Shipping, a subsidiary of Aspo Plc. As a result, the combined investment into ESL Shipping managed by OP Finland Infrastructure LP rises to a total of €45 million at the closing of the transaction.
The co-investment by Varma was made with the same valuation and terms as agreed between Aspo and OP Finland Infrastructure in their 8 November 2023 announced €30 million investment in ESL Shipping. Competition authority approvals and change of control approvals from financial institutions have been received and the closing of OP Finland Infrastructure LP’s investment together with Varma’s co-investment has been estimated to take place on 29 February 2024.
The combined €45 million investment managed by OP Finland Infrastructure LP will be made against the issuance of new shares in ESL Shipping with an agreed pre-money equity valuation of €165 million, corresponding to a 21.43% ownership stake in ESL Shipping. This implied an enterprise value of approx. €300 million for ESL Shipping.
“We are delighted that Varma alongside OP Finland Infrastructure has decided to invest in the ongoing green transformation of ESL Shipping. This additional equity further accelerates the implementation of ESL Shipping’s low-carbon growth strategy to provide fossil-free sea transportation in the future”, said Rolf Jansson, CEO of Aspo Group.
“ESL Shipping plays a pivotal role in Finnish maritime transportation and our investment with OP Finland Infrastructure supports the growth and de-carbonisation of ESL’s fleet going forwards. Investments in accelerating green transition are in the core for us”, said Johanna Haikala, Investment Manager of Varma Mutual Pension Insurance Co.
The program to accelerate ESL Shipping’s green transformation will continue through further investments in fleet and technologies enabling fossil-free shipments for the company’s customer base. The ongoing investment in 12 green coasters is progressing as planned. A total of seven vessels are already under construction and the first vessel in the series, Electramar, was delivered in December. The second vessel, Stellamar, was launched in October.
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Read the article online at: https://www.drybulkmagazine.com/shipping/13022024/varma-and-op-finland-to-invest-in-esl-shipping/
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