Stolt-Nielsen buys Jo Tanker's chemical tanker operations for $575 mln (updated)

Stolt-Nielsen

18/07/2016 10:20

* Stolt-Nielsen buys competitor's chemical tanker operations 
    * Deal includes 13 chemical tankers and 50 pct in 8 
newbuilds 
    * Shares rise 2.3 pct 
 
 (Adds more details) 
    July 18 (Reuters) - Chemical tanker operator Stolt-Nielsen 
Ltd SNI.OL :  
    * Stolt-Nielsen agrees to acquire the chemical tanker 
operations of Jo Tankers. 
    * Stolt-Nielsen says total purchase price is approximately 
$575 million, including proportional share of newbuildings in 
joint venture. 
    * The transaction comprises 13 chemical tankers and a 50 pct 
share in a joint venture with eight chemical tanker  
newbuildings. 
    * Stolt-Nielsen says funding for transaction has been 
secured through some of Stolt-Nielsen limited's main banks with 
a combination of bridge financing, secured term loans and 
available corporate funds. 
    * Stolt-Nielsen ltd says transaction is subject to 
competition authority approval, with a decision expected before 
end of September 2016. 
    * CEO Niels G. Stolt-Nielsen says transaction  covers the  
tonnage replacement needs for the next  several years 
    * CEO says deal will give some  operational savings and add  
new trade  routes  
    * Stolt-Nielsen shares trade up 2.3 percent to NOK 111.5 
after announcement compared to a rise of 0.5 percent just ahead 
of the announcement  
    * The 13 chemical tankers consist of eight all stainless 
steel ships, ranging from 19,000 dwt  to 38,000 dwt, and five 
ships  with a combination of stainless steel and coated tanks, 
all of approximately 37,000 dwt 
    * Six of the 13 ships have been on  time charter to Stolt  
Tankers for the last five years. 
    * The newbuildings included in the transaction consist of 
eight all stainless steel eco-friendly ships of 33,000 dwt on 
order from New Times Shipbuilding in China, the first of which 
was delivered in early July 2016. 
    * The seven remaining newbuildings are to be delivered in 
the second half of 2016 and in 2017.    
 
Source text for Eikon:  ID:nHUG2SpsRx  
Further company coverage:  SNI.OL  
 
 (Reporting By Ole Petter Skonnord) 
 ((olepetter.skonnord@thomsonreuters.com;)) 
 
Keywords: SNL TANKER/M&A