Harland & Wolff shipyards sold to Navantia UK for £69.9m

LONDON - Riverstone (LON:RSER) Credit Opportunities Income (RCOI), a London Stock Exchange-listed company, has successfully sold the business and assets of Harland & Wolff Group to Navantia UK. The sale, which was announced on Monday, includes all four operating yards located in Belfast, Appledore, Methil, and Arnish, but does not include the Islandmagee Gas Storage project.

The transaction, which followed an extensive marketing process managed by Rothschild & Co, was finalized for a cash consideration of £69.9 million. In addition to the purchase price, Navantia UK agreed to waive £23 million of debt. The deal was initially agreed upon in October 2024 when Navantia UK provided debt funding to Harland & Wolff Group.

More than 1,000 jobs have been secured as a result of the sale, providing stability to the workforce. The administrators expect to make an initial distribution of approximately £44 million to Riverstone Credit Partners (RCP) and affiliated funds, including RCOI, in the coming days. Future distributions are estimated to total around £26 million over the next few months.

The sale is expected to result in recoveries of about £70 million to RCP and its affiliated funds. The initial distribution will satisfy the super priority term loan, with future distributions to be shared pro rata among all Riverstone funds invested in Harland & Wolff.

Separately, Rothschild & Co is also soliciting interest for the acquisition of Harland & Wolff’s Islandmagee Gas Storage project, which is expected to significantly increase the UK’s gas storage capacity once operational.

RCOI has confirmed a modest reduction of approximately 4% on the 30 September independent valuation of its investment, taking into account the proceeds from the Harland & Wolff sale, existing cash balances, and the latest estimated valuation of Islandmagee.

The transaction involved independent advisors, including Teneo Financial Advisory Limited, Rothschild & Co, Bracewell LLP, and Stephenson Harwood LLP. RCOI plans to update shareholders with additional information regarding distributions and other material developments in the coming weeks.

This sale marks a significant shift in the ownership of Harland & Wolff, a historic player in shipbuilding, and the transaction is based on a press release statement from RCOI.

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