NETHERLANDS - 3i divests Dockwise stake

frannie
19 October 2009

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3i has sold approximately 26% of its interest in Oslo-listed marine contractor Dockwise, as part of a wider placement of shares by the company that could raise between $220-250m.

Bain Capital's fixed income arm Sankaty Advisors and Dutch investment groups Project Holland Fonds and HAL Investments are expected to participate in the directed placement, with many expecting them to subscribe for up to $184m of new shares.

Certain existing shareholders have also subscribed for a total of $52m in the directed placement. Existing shareholders who have not participated in the will have rights to participate in a subsequent offering of new ordinary shares which is expected to raise $118m

The deal is in line with recapitalisation efforts that will bring the company's debt-to-EBITDA ratio down from 3.4 to close to 2.5, while debt-to-equity will shift from 75:25 to 50:50.

In early 2007, 3i acquired Dockwise Transport, a heavy transportation company operating in the marine and oil and gas industry, from offshore services company Heerema Group and Wilhelmsen for a total consideration in excess of $700m. At the time Lehman Brothers, HVB and Fortis underwrote the debt package supporting the acquisition.