Axcel, PFA, PKA in DKK 4.7bn deal for Danmarks Skibskredit

The deal sees the investors acquire 72% of the shares and 79% of voting rights in Danmarks Skibskredit through a joint vehicle equally owned by Axcel, PFA and PKA, at a share price of DKK 14.16 apiece. The implied total value of Danmarks Skibskredit is DKK 4.722bn.

Danmarks Skibskredit's sale follows a lengthy sales process initiated by the Danish National Bank, a consortium of Danish banks and Danish shipping giant AP Møller-Maersk. Bidders for Danmarks Skibskredit reported in Danish media included Nordic Capital, former Nordic Capital partner Christian Dyvig and Goldman Sachs.

The Danish Maritime Fund will retain all the B-shares, corresponding to a 10% shareholding in Danmarks Skibskredit following the buyout. Other remaining shareholders have received a redemption offer of their shares in line with the price paid by Axcel, PFA and PKA through their joint vehicle AXPP ShareCo. Due to The Danish Maritime Fund's retained shareholding, other minority shareholders cannot be forced out through compulsory purchase.

AXPP will finance the acquisition of A-shares through DKK 1.35bn of share capital, DKK 2bn of tier 2 capital – supplementary capital, as opposed to regulator-required bank reserves – and DKK 1bn of senior unsecured debt, which will be repaid through an extraordinary dividend payment following completion. The dividend repayment will see Axcel, PFA and PKA reduce the capital ratio of its new bank from 18.8% to 16.9%, following growth in H1 2016 from a level of 17.3% at the end of 2015.

The new owners do not expect the credit ratings awarded to Danmarks Skibskredit and its bonds to change post-acquisition. The bank currently holds a BBB+ issuer rating by Standard & Poors, which most recently rated Danmarks Skibskredit's listed bonds as A.

Due to the company's previous structure, a locked capital reserve of DKK 8.3bn will be paid to The Danish Maritime Fund at the point of exit.

Company
Headquartered in Copenhagen, Danmarks Skibskredit is a financing business for international shipping companies that secures loans against vessels.

Founded in 1961 by Danish banks, insurance companies, shipyards and shipping companies, alongside the Danish National Bank, Danmarks Skibskredit's purpose was to support the Danish shipping and maritime sectors. It exclusively financed vessels built in Denmark for Danish shipping companies until the 1990s, when it began expanding its financing ability to non-Danish vessels and companies.

Danmarks Skibskredit currently employs 70 people and manages a DKK 43bn loan portfolio, held against 450 vessels.

People
Axcel – Christian Schmidt-Jacobsen (managing partner).
Danmarks Skibskredit – Peter Lybecker (chair).

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• Topics
• Buyouts
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• Axcel