Shipping Magnates Team to Buyout Offshore Firm Edda Wind
Three of the best-known names in the shipping industry, Fredriksen, Ofer, and Wilhelmsen, the current large shareholders of Edda Wind have decided to take the company private. They report that the current ownership structure has emerged as a hindrance to their growth plans for the company.
Currently, Frediksen’s company Geveran Trading and Wilhelmsen New Energy jointly control approximately 67 percent of the shares of Edda Wind. Through a newly formed company Electric AS, the three investors plan to full control of Edda Wind and delist the firm from the Oslo Stock Exchange. They will make a mandatory cash offer for the shares they do not currently own offering a nearly 33 percent premium to the current price or a total valuation of $287.5 million.
The offer comes just days after Edda Wind, which owns and operates eight service operation vessels (SOVs) and commissioning service operation vessels (CSOVs) for the offshore wind market, released its 2024 financial results posting a 79 percent growth in revenues to €70.4 million ($80.2 million) and achieving a 161 percent increase in earnings (EBITDA).
Started in 2015 to focus on the emerging offshore wind sector, Edda Wind was an early mover when it comes to delivering purpose-built vessels for offshore wind farm operations. Management states that Edda Wind has already gained a solid track record of excellence in the offshore wind industry. The company is continuing to build out its fleet.
The three shareholders have teamed up to take control of Edda Wind after getting frustrated by the company’s slow rate of growth, particularly the acquisition of next-generation offshore wind service vessels.
“Following a series of equity capital raises it has become evident to the three largest shareholders that it will be challenging to continue investing and scaling the company in a public setting,” the company said in the filing announcing the buyout. “A key hindrance for Edda Wind as a publicly listed company has been the concentrated ownership situation resulting in a low free float and poor stock liquidity.” The three investors said they are focusing on the ability to continue to grow Edda Wind’s fleet of next-generation offshore wind service vessels.
Edda Wind is pushing ahead with fleet expansion and intends to add four newbuilds this year. Two of the vessels have already secured contracts upon delivery, including NB 967 which is set for delivery from Vard’s Vung Tau yard in Vietnam in the second quarter of the year. This will mark the company’s entry into the Taiwanese market which is projected to grow significantly over the coming years.
As a key player in the market, all the company’s vessels are designed to transport wind turbine technicians and other personnel, as well as equipment, spares, and consumables, to offshore wind farm sites. They also serve as accommodation hubs for technicians as they perform work on the wind turbines. The fleet of the CSOVs under construction will be able to accommodate up to 120 persons, while the SOVs can accommodate up to 60 persons.
With offshore wind experiencing significant growth, the company highlights stable market conditions with approximately 83 percent of vessel capacity for 2025 already booked.