Kohlberg Kravis Roberts & Co.
) finalized the sale of its Turkish ferry unit - U.N. Ro-Ro
Isletmeleri AS - to the local investment firms Esas Holding AS and
Actera Partners LP. However, the terms and conditions of the
agreement were not specified.
According to people familiar with the matter, the sale of the ferry
business - Kohlberg Kravis's only endeavor in Turkey - will fetch
around 700 million euros ($936 million). Kohlberg Kravis will
obtain 50 million euros in excess of its net debt despite the
general expectations of a loss from the sale.
Moreover, the deal is awaiting antitrust clearance from the
Ankara-based competition panel. Also, Actera and Esas hired Morgan
) as their financial adviser in this partnership purchase.
Last year, Kohlberg Kravis proposed to sell its 97.6% investment in
the Istanbul-based carrier through a private auction. For this
purpose, the company hired services of the Goldman Sachs Group Inc.
Many companies showed interest to bid for the auction. Among these
were DFDS Group A/S - the Copenhagen-based ferry and logistics
company, local infrastructure firm Global Yatirim Holding AS and
International Transporters Association of Turkey. However, the
Actera and Esas partnership was better positioned to win from the
Kohlberg Kravis planned to exit the shipping space when there was a
rise in private equity investment in the shipping space. Another
company in the same space, Apollo Global Management, LLC (
), entered into a joint venture with German freight line - Rickmers
Group last year.
About the Turkish U.N. Ro-Ro Unit
Kohlberg Kravis had acquired the Turkish ferry operator, which
provides roll-on and roll-off services, for approximately 910
million euros ($1.22 billion) in 2007. This was considered the
biggest investment by a private equity firm in Turkey at that time.
Kohlberg Kravis had given the shipping line an additional 25
million euros in 2010. Moreover, the Turkish company's debt load
amounts to $800 million.
U.N. Ro-Ro is well established in the Mediterranean routes
connecting Turkey with Italy's Trieste, Toulon in France, and
Damietta in Egypt by running 12 vessels. This long journey
undertaken by the Turkish company's fleet permits truck drivers to
take a detour from the hilly Balkan region where highways are still
to be properly developed.
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