Associated Danish Ports (ADP) will gain a new co-owner when Canadian asset manager Brookfield Asset Management takes over 14.1 percent of the company through a capital injection of DKK 700 million. The investment is intended to accelerate ADP's growth and support its ambition to become one of the leading port companies in the Nordic region. The capital injection consists of a combination of debt financing and equity. The structure strengthens both ADP's capital base and liquidity. This is stated by ADP in a press release.
ADP owns and operates, among other things, the Port of Fredericia, the Port of Nyborg and Taulov Dry Port, and as of August 1, the company will also take over the Port of Hanstholm. The capital will be used for targeted investments in new and existing business areas as well as strategic partnerships, including a CO2 storage project with TotalEnergies and Evida.
Fredericia Municipality will remain the majority owner of ADP with 76.5 percent, Nyborg Municipality and Middelfart Municipality will in future own 9.1 pct. and 0.3 pct., while Brookfield becomes the second largest shareholder with a share of 14.1 pct.
- Developments in the infrastructure and logistics market are moving faster than ever, and if Denmark is to maintain its position as a strong import and export nation, Danish ports must be able to keep up with foreign ones. With Brookfield as a co-owner, ADP can ensure future growth across existing and new business areas. We are thus creating the foundation for ADP to develop into one of the leading port companies in the Nordic region. We are adding capital, skills and experience that can support ADP in entering an unprecedented development period for a Danish port company, says Rune D. Rasmussen, CEO of ADP.
Possible tax refund set the process in motion
According to Fredericia Dagblad, Fredericia Municipality, which is the main shareholder, has, among other things, sought an investor to free up funds, as the municipality is facing a tax case against Ørsted. If the case is decided in Ørsted's favor, the municipality could be ordered to repay DKK 350 million. DKK in corporate tax.
Christian Bro, the mayor of Fredericia, says that the deal took its first steps in the spring of last year.
- The start a year ago in April was due to DKK 350 million, which hung like a sword of Damocles, which we might have to pay. We had to find them, he said according to the local media at a press conference in connection with the announcement of the new ownership structure and elaborates:
- And ADP always excels when they are given a task. They are the driving growth factor here in the municipality. They have been in recent years.
If the municipality does not lose the case, the money will be used for further growth of the port's businesses. This could include be to take a more aggressive approach to growth at Hanstholm Port or to extend Taulov Dry Port as a concept to the other ports that ADP has under its umbrella, says Rune D. Rasmussen.
Experienced investor to push growth
Brookfield Asset Management is a global asset manager with over 1 trillion USD under management. The company has activities in renewable energy, infrastructure, real estate and private equity and owns a number of ports in, among others, the USA, Australia and the UK. Brookfield is investing through its Brookfield Infrastructure Structured Solutions strategy, which focuses on partnerships with companies in growth.
- Brookfield has been operating critical infrastructure, including ports, for decades, and will use this experience as an owner and operator in the sector to support and accelerate ADP's growth, says Keshav Bhojania, Managing Director of Brookfield Infrastructure.
Although it was a possible tax case that set the process in motion, it is not the reason for the inclusion of Brookfield in the ownership group. Brookfield's know-how will be used to further develop the port, says Christian Bro, who also emphasizes the importance of the municipality maintaining its position as majority owner.
- Both Nyborg and Fredericia Municipalities want to ensure the development of our companies in the future, so that jobs and the municipal revenue base are solid and growing. With Brookfield as a co-owner of ADP, we now have a strong partner to help us create further local and regional growth, which provides more opportunities for the citizens of the municipalities and other companies. We retain control, but receive capital and strong external competencies so that our company can continue its development and growth, says Christian Bro.
ADP expects, among other things, with the help of the new investor to more than double its revenue, which in 2024 was 275 million. DKK, within 8-10 years.
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