The agreement will be effective from 1 January 2005 and, in connection with the sale of the shares in Hoyer-Odfjell BV to Hoyer GmbH, Odfjell will be repaid shareholder loans and released of guarantees established for Hoyer-Odfjell's financial commitments. Based on the sales price of the shares in Hoyer-Odfjell, the sales gain for Odfjell will be about USD 5 million. The transaction is subject to final documentation and we expect closing to take place in January 2005.
During the first nine months of 2004 Odfjell's share of Hoyer-Odfjell's gross revenue was USD 41 million compared to the total consolidated gross revenue of the Odfjell Group of USD 733 million. Our share of the net profit in Hoyer-Odfjell during the same period was less than USD 1 million of our USD 83 million Group bottom line result.
We have decided to sell our share of the business to Hoyer due to different views on the strategic development of the company. Furthermore, we have not experienced the expected synergies with our core business of seaborne transportation and onshore storage of chemicals and other liquid products.
Odfjell continues to develop its core business through a long-term newbuilding program of altogether nineteen new ships with deliveries through 2011 as well as expanding our tank terminal business, with new projects in China and Iran.
