Key Takeaways
- • KKR acquires Ocean Yield for NOK 7.2 billion ($829 million) through Octopus Bidco, taking the Norwegian maritime leasing company private with over $2 billion in assets under management.
- • Ocean Yield CEO Lars Solbakken characterizes KKR ownership as a "strong advantage," citing access to KKR's capital, expertise, and global network to scale the maritime leasing business substantially.
- • KKR injected $30 million in new equity during Q3 as controlling shareholder, demonstrating committed capital deployment ahead of the full acquisition.
- • The transaction includes ancillary asset sales: Ocean Yield's 50% stake in OY Holding LR2 (four LR2 product tankers), and a $35 million option granted to Aker Energy to acquire the FPSO Dhirubhai-1 vessel valued at $51.5 million.
- • KKR's offer of NOK 41.00 per share commenced October 4 with a 21-day acceptance window; upon reaching 90% acceptance, KKR will execute a compulsory offer for remaining shares and delist the company.
Summary
KKR has agreed to acquire Ocean Yield ASA, a publicly-listed Norwegian maritime leasing and ship-owning company, for NOK 7.2 billion ($829 million). The acquisition is being executed through Octopus Bidco AS, an entity owned by funds advised by KKR, and will result in Ocean Yield transitioning from public to private ownership. The transaction encompasses over $2 billion in assets, positioning Ocean Yield as a significant maritime platform within KKR's portfolio.
Ocean Yield Chief Executive Lars Solbakken expressed strong support for the partnership, characterizing KKR ownership as a strategic advantage for the company's growth trajectory. Solbakken stated that leveraging KKR's capital, expertise, and global network will enable Ocean Yield to "develop the business with the intention to build a substantially larger company." This sentiment reflects confidence in KKR's operational capabilities and value-creation methodology within the maritime sector. Prior to the formal acquisition announcement, KKR's affiliated funds injected $30 million in new equity capital during the third quarter, demonstrating committed capital deployment and signaling conviction in the business model.
The acquisition structure includes several asset-level transactions. Ocean Yield is divesting its 50% stake in OY Holding LR2, a joint venture with Aker Capital that owns four LR2 product tankers on long-term charter to Navig8 Group. Additionally, Aker Capital is selling its stake to KKR for $5.1 million. The transaction also contemplates a potential disposal of Ocean Yield's FPSO Dhirubhai-1, a 42-year-old floating production storage and offloading vessel. Aker Energy has been granted a $35 million purchase option for the vessel, which has been in lay-up in Sri Lanka since coming off charter to Reliance in 2018. Aker Energy's total investment in the vessel, including $17.9 million in prior compensation payments, reaches $52.9 million.
The tender offer commenced October 4 at NOK 41.00 per share with a 21-day acceptance period. Should KKR achieve acceptance from 90% of shareholders, the firm will initiate a compulsory acquisition for remaining shares and proceed with delisting Ocean Yield from Oslo listing. Simpson Thacher is representing KKR affiliates in the transaction. The deal reflects KKR's broader investment thesis in maritime assets and its track record as an active owner in transportation and logistics sectors.
Ocean Yield Chief Executive Lars Solbakken expressed strong support for the partnership, characterizing KKR ownership as a strategic advantage for the company's growth trajectory. Solbakken stated that leveraging KKR's capital, expertise, and global network will enable Ocean Yield to "develop the business with the intention to build a substantially larger company." This sentiment reflects confidence in KKR's operational capabilities and value-creation methodology within the maritime sector. Prior to the formal acquisition announcement, KKR's affiliated funds injected $30 million in new equity capital during the third quarter, demonstrating committed capital deployment and signaling conviction in the business model.
The acquisition structure includes several asset-level transactions. Ocean Yield is divesting its 50% stake in OY Holding LR2, a joint venture with Aker Capital that owns four LR2 product tankers on long-term charter to Navig8 Group. Additionally, Aker Capital is selling its stake to KKR for $5.1 million. The transaction also contemplates a potential disposal of Ocean Yield's FPSO Dhirubhai-1, a 42-year-old floating production storage and offloading vessel. Aker Energy has been granted a $35 million purchase option for the vessel, which has been in lay-up in Sri Lanka since coming off charter to Reliance in 2018. Aker Energy's total investment in the vessel, including $17.9 million in prior compensation payments, reaches $52.9 million.
The tender offer commenced October 4 at NOK 41.00 per share with a 21-day acceptance period. Should KKR achieve acceptance from 90% of shareholders, the firm will initiate a compulsory acquisition for remaining shares and proceed with delisting Ocean Yield from Oslo listing. Simpson Thacher is representing KKR affiliates in the transaction. The deal reflects KKR's broader investment thesis in maritime assets and its track record as an active owner in transportation and logistics sectors.
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