Tanker Investments Adds Six Suezmaxes
Oslo-listed investment company Tanker Investments Ltd. has agreed to acquire six, modern Suezmax tankers for an en bloc purchase price of USD 315 million.
The fleet consists of four, 2009-built and two, 2010-built Suezmaxes constructed by Rongsheng Heavy Industries Group Ltd. and are expected to be delivered to Tanker Investments during the first half of 2015.
Tanker Investments said it intends to finance the entire purchase price by drawing on credit facilities to be secured by the company’s existing fleet and the new Suezmax fleet.
All of the Suezmaxes will have completed their 5-year drydocking, including the installation of fuel efficiency enhancements, upon delivery to Tanker Investments and will trade in the Gemini Suezmax Pool where they are expected to trade with strong pool points, the investment company added.
Commenting on the acquisition William Hung, Tanker Investments’ Chief Executive Officer said that with the six new tankers, the company’s fleet has growth to 20 vessels.
“With an average fleet age of only 4.3 years, our modern fleet is well positioned to benefit from further upside driven by an improving tanker market underpinned by solid demand and supply fundamentals.
“With Tanker Investments continuing to trade at a discount to net asset value per share, the repurchase of our own shares also represents a compelling investment. We remain committed to completing the remaining USD 15 million share repurchase authorized by the Board earlier this year and may consider expanding our repurchase program in the future,” he added.
The transaction has been approved by the Board of Directors of both Tanker Investments and the sellers and remains subject to customary closing conditions.