Dubai-based investor Magellan Capital is set to snap up 90% of ship financing firm Danish Ship Finance (DSF) in a EUR 700 mn transaction, Bloomberg reported. The move comes as Magellan looks to diversify its investment portfolio, and marks the group’s first major investment. A timeline for the acquisition was not disclosed.

Details: The acquisition will see Magellan snapping up a 90% stake in the company from Nordic private equity player Axcel and two Danish pension funds which had bought DSF in a 2016 USD 613 mn transaction, Bloomberg said. Danish Maritime Fund will retain the remaining 10% stake in the company.

Magellan is beefing up its portfolio: Despite having its origins as a player in the marine services sector, Magellan is looking to diversify its portfolio by adding advisory and services, CIO Ahmed Omer said. The outfit is funding its expansion from USD 1.1 bn that its owner Hassan El Ali set aside after selling Zakher Marine to Adnoc Logistics & Services.

The outfit expects three more acquisitions worth some USD 200 mn for the remainder of the year, targeting firms in real estate, luxury, and healthcare, Omar said.

News of the sale was first picked up in April, when Mubadala Investment Company was named as a potential DSF buyer, TradeWinds reported citing an InsideBusiness report. DSF had responded to the claims by reiterating that a clarification was coming in 1H 2024.

About DSF: The Copenhagen-based vessel mortgage finance provider finances some 679 vessels and holds a USD 4.9 bn shipping loan book.

Tags: