MISC Divests Oil Storage Venture with Vitol

 

MISC Berhad informed that its wholly-owned subsidiary MTTI Sdn. Bhd.have entered into an agreement with VIP Terminals Finance B.V. to dispose 50 percent of the issued share capital of VTTI B.V. for a cash consideration of $830 million, subject to completion of the conditions precedent. VIP Terminals Finance B.V. is ultimately a wholly-owned subsidiary of Vitol Investment Partnership Limited, an investment vehicle sponsored and managed by the Vitol Group.

Upon completion of the proposed divestment, VTTI will cease to be a joint-venture company of MTTI.

Yee Yang Chien, President/CEO of MISC said, "For MISC, this divestment will enable us to unlock the value of our investment in VTTI B.V. and take advantage of future opportunities within our core business of energy and petroleum related shipping."

Rob Nijst, CEO of VTTI said, "Since inception, we have developed an independent storage company supported by the financial strength and market insight offered by Vitol, the world’s largest independent energy trading company. We are confident that the proposition to our range of customers and our asset footprint will continue to improve and grow.”

Ian Taylor, President & CEO of Vitol said, “MISC has been an excellent partner over the last five years and we have greatly enjoyed working with them. Looking forward, we are very excited by VTTI B.V.’s future potential. The management team, led by Rob, has successfully grown and developed the business worldwide – today VTTI B.V. has total gross storage capacity of 54 million barrels, including assets under construction. The terminals have an excellent HSE record and are structured and managed to accommodate the demanding requirements of the energy trading community."

Moving forward, MISC aims to continue to strengthen its core businesses in energy shipping and energy-related services, as well as undertake opportunistic acquisitions or investments for future growth.