Aramco, Bahri complete $1.3b shipping merger


Published: Jun 18, 2014
Source: Saudi Gazette

News

Email this story Print this page zoomin zoomout

Aramco, Bahri complete $1.3b shipping merger

The National Shipping Company of Saudi Arabia or NSCSA (Bahri) and Saudi Aramco’s subsidiary, Vela International Marine Ltd., have completed their $1.3 billion merger, Saleh N. Jasser, Bahri’s CEO, said Tuesday.

“The total amount involved is $1.3 billion. The cash payment involved is $832.7 million, including the issuance of 7.875 million new shares at SR22.25 per share,” Jasser said at  a press conference in Riyadh.

Aramco will own 20 percent of NSCSA shares, he added.

Under the merger, Saudi Aramco is transferring its entire Vela fleet — 14 double-hull very large crude carriers (VLCCs), one VLCC used as a floating storage; five refined products carriers; all Vela’s ship-based cadres and some of its land-based personnel; and a part of its operations systems — to Bahri, which would then have a 77 vessel fleet, Aramco said.

The agreements with Aramco also include a long-term shipping contract, exclusive VLCC crude oil shipping provider to Aramco sold on delivered basis and the contract includes a TCE floor and threshold, Jasser said. NSCSA is the biggest shipping fleet in the Middle East and the third largest VLCC owner in the world, behind MOL and Fredriksen.

© Copyright - Saudi Gazette
comments powered by Disqus

Middle East Stock Markets

Index Last Change %Change
TASI 7,425.72 +90.85 1.24%
ADI 4,449.68 +18.11 0.41%
DFMGI 3,379.01 -23.30 -0.68%
QE 9,030.44 +252.71 2.88%
KSE 6,769.06 -3.03 -0.04%
MSM30... 5,118.310 -3.160 -0.06%
ASE... 2,160.00 +10.78 0.50%

Recent Analyst Actions  >>

or
Company Price Opinion
Bank Muscat 0.52 Buy
Voltamp Energy Co. 0.52 Overweight
Jarir Marketing Co. 142.60 Overweight
Saudi Basic Industries Corp. 90.00 Neutral
Etihad Etisalat Co. 25.00 Neutral

Markets Today Quick Links

×

Get all the latest updates about the GCC & Global Markets directly to your email