Boskalis and Kotug sign LOI to sell Kotug Smit Towage to Boluda
Royal Boskalis Westminster, together with co-shareholder Kotug International, has signed a letter of intent (LOI) relating to the sale of Kotug Smit Towage to Boluda Group.
Under the terms of the LOI, the total (100 per cent) enterprise value of Kotug Smit Towage is valued at €300 million (US$335 million). Boskalis expects to receive approximately €90 million (US$100 million) in cash for its 50 per cent equity stake in the joint venture.
The Kotug Smit Towage joint venture between Boskalis and Kotug was formed in 2016 which at the time covered 11 ports in the Netherlands, Belgium, Germany, and the United Kingdom. The joint venture has since expanded its presence into new ports.
Officials from both companies claim that a further consolidation of the European harbour towage market would be beneficial, hence the decision to sell the joint venture to Boluda.
The transaction is expected to close in the second half of 2019.