3i’s Scandlines in dividend recap

The dividend payout was funded by cash on the company's balance sheet, as well as proceeds from the sale of one of Scandlines' ferry routes. The recap consisted of an amendment to Scandlines' existing debt facility.

The deal will also finance two new vessels for the ferry operator. Following the sale of its Elsinore-Helsingborg route, the company only operates two routes, both in the Baltic Sea: Gedser-Rostock and Rødby-Puttgarden.

3i lodged a complaint with the EU competition authority against the Danish government last year, claiming the state acted improperly when it sold Scandlines to 3i and Allianz in 2007 for DKK 11.6bn.

The ferry operator is under threat from the Fehmarn Tunnel, which will provide a fixed-link alternative to the routes Scandlines operates and is expected to be completed in 2021.

Previous funding
Scandlines was acquired by 3i, Allianz Capital Partners and DSR from the Danish government and German national rail operator in 2007, for DKK 11.6bn. 3i and ACP bought out DSR's 20% stake in 2010.

In 2013, 3i raised €875m in senior loans to refinance its investment's debt facilities and buy Allianz out.

Company
Founded in 1998 as a merger between Danish, German and Swedish state-owned ferry operators, Scandlines operates two ferry routes in the Baltic Sea, transporting passengers and freight between Denmark and Germany.

The Rostock-headquartered company had revenues of €505m in 2013 and employs around 2,000 people.

Advisors
Equity – DC Advisory (Corporate finance).

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