The Malaysian shipping company has agreed to sell its 50 percent share in VTTI B.V. to energy trader Vitol Group, which already owns the remaining 50 percent of the company.
Malaysian shipping company MISC Berhard has agreed to sell its 50 percent stake in the oil terminal and storage business VITTI B.V. to the investment arm of energy trader Vitol Group for $830 million.
MISC said in a statement the transaction will be carried out by VIP Terminals Finance B.V., which already owns the remaining 50 percent share of VITTI. VIP Terminals Finance B.V. is a wholly-owned subsidiary of Vitol Investment Partnership Limited, which is sponsored and managed by the Geneva, Switzerland-based Vitol Group.
VTTI B.V., headquartered in Rotterdam, The Netherlands, will continue to operate as an independent, standalone company headed by current Chief Executive Officer Rob Nijst, according to joint statements from VITTI and Vitol.
VTTI operates storage terminals in 11 countries with a total gross capacity of 8.7 million cubic meters, including assets under construction.
“Since inception, we have developed an independent storage company supported by the financial strength and market insight offered by Vitol, the world’s largest independent energy trading company,” Nijst said of the agreement, “We are confident that the proposition to our range of customers and our asset footprint will continue to improve and grow.”
“MISC has been an excellent partner over the last five years and we have greatly enjoyed working with them,” added Vitol CEO and President Ian Taylor, “Looking forward, we are very excited by VTTI B.V.’s future potential. The management team, led by Rob, has successfully grown and developed the business worldwide – today VTTI B.V. has total gross storage capacity of 54 million barrels, including assets under construction. The terminals have an excellent HSE record and are structured and managed to accommodate the demanding requirements of the energy trading community.”
MISC said it will continue to strengthen its core businesses in energy shipping and energy-related services, as well as undertake opportunistic acquisitions or investments for future growth.
“For MISC, this divestment will enable us to unlock the value of our investment in VTTI B.V. and take advantage of future opportunities within our core business of energy and petroleum related shipping,” said Yee Yang Chien, president and CEO of MISC.
MISC divests stake in oil terminal business
