UAE investor takes over Danish Ship Finance

United Arab Emirates investor Magellan Capital has sealed a deal to buy lender Danish Ship Finance (DSF) for an undisclosed sum.

Magellan, set up by Abu Dhabi-based Hassan El Ali after he sold offshore support vessel owner and operator Zakher Marine International (ZMI) to ADNOC Logistics & Services, is buying the majority of Danish Ship Finance from Nordic private equity firm Axcel and two Danish pension funds, PFA and PKA, which together bought the company in 2016.

The deal, expected to be completed imminently, will result in Magellan owning 90% of the company’s shares and the Danish Maritime Fund keeping its 10% holding. Axcel will also retain a 5% stake for up to two years “to ensure a smooth ownership transition”.

Axcel, PFA and PKA together own 96.2% of the A-shares in Danish Ship Finance, and the remaining A-shareholders will receive an offer to sell their A-shares at the same price and terms within the coming week. 

The company is expected to move forward with its current executive management and board, which will be joined by Magellan’s director, Omar Elali, and chief investment officer, Ahmed Omar.

Founded in 1961, DFS said its board views the deal with Magellan, which operates out of offices in Dubai, Abu Dhabi and London, as “a highly satisfactory solution that provides the platform for a continued strong Danish ship finance institution backed by a well-capitalised owner and potential for controlled global growth in cooperation with Danish and international shipping companies.”