3i Group plc, an international investor with headquarters in London, says it has signed an agreement with existing co-shareholder, Allianz Capital Partners (“ACP”), the captive, alternative asset investment platform of Allianz Group, to acquire their stake in Scandlines. 3i, and funds managed by 3i, will consequently become majority shareholders.
Scandlines, which operates short haul services in Southern Baltic, signed a letter or intent with STX Finland earlier this year to build two large ferries for its Rostock-Gedser service, but final contract has not been signed so far.
3i, and funds managed by 3i, are investing €165m to facilitate the acquisition of ACP’s 49% stake in Scandlines, one of the largest ferry operators in the Baltic Sea. The closing of the transaction is expected to take place before the year end, the company said in a statement.
As part of 3i’s acquisition of ACP’s stake, the company has successfully refinanced its current debt facilities into a new €875m package. This has been well received in the debt capital markets and provides a firm foundation for Scandlines’ future strategic objectives.
3i and ACP initially invested in Scandlines in June 2007, acquiring 40% of the shares each. They subsequently acquired Deutsche Seereederei’s 20% stake in 2010.
Over the last six years, 3i and ACP have taken a pro-active approach to their investment in Scandlines, progressing a number of initiatives including strengthening the management team, introducing operational improvement programmes and refining the business concept with an increased focus on the customer experience as well as yield management.
Under 3i and ACP’s stewardship, Scandlines has been transformed from a state-owned, diversified company to a focused, short sea route specialist. In 2011, the company disposed of its long-distance freight routes to Stena to focus on its core business. The decision to build two new ferries for the Rostock-Gedser route will provide increased capacity to capture the corridor growth driven by Central and Eastern European traffic.
