Danish shipping and energy conglomerate A.P. Møller – Mærsk A/S (APMM) has completed the sale of its tanker business Maersk Tankers A/S to one of its subsidiaries APMH Invest A/S.
“Today, the sale has been completed and the shares in Maersk Tankers A/S have been transferred to APMH Invest A/S,” the group said in an update on the deal.
The sale was announced on September 20 as part of Maersk Group’s focus switch to container shipping, ports, and logistics, and has been carried out in the form of a USD 1.17 billion all-cash transaction.
The shift saw the group’s oil business, Maersk Oil, being sold off in August to Total S.A for USD 7.45 billion in a combined share and debt transaction.
A.P. Moller Holding disclosed earlier that it would set up an ownership consortium for Maersk Tankers’ fleet with Japan’s Mitsui & Co. Ltd. and other potential partners, in which A.P. Moller Holding will be the majority shareholder.
The proceeds from the transaction will be used to reduce debt, the group said.
As explained, the transaction entails a market upside provision regulating total payment should the product tanker market significantly improve with a rebound in vessel values before the end of 2019.
Maersk said the accounting impact of the transaction would be immaterial and will have no impact on APMM’s financial guidance for 2017.