Bermuda-based crude oil shipping firm DHT Holdings announced today that it has acquired Samco Shipholding Pte. Ltd, a Singapore firm that owns and operates a fleet of seven very large crude carriers (VLCCs) with an average age of 4.5 years.
With this acquisition, DHT’s fleet expands to 20 VLCCs (including six VLCCs under construction at Hyundai Heavy Industries), two Suezmaxes and two Aframaxes.
The company provided the following statement on the acquisition:
“This is a big step for DHT. The Samco fleet consists of modern high quality vessels all being fitted with fuel saving devices. The time charter contracts are with first rate counterparties and are at premium levels to the current time charter market. With the 50% shareholding in Goodwood bringing technical management into DHT, we are now a fully integrated ship owning company with all functions in-house.”
Financial details of the acquisition:
Pursuant to the terms and subject to the conditions set forth in the share purchase agreement, DHT will acquire all the shares of Samco for a purchase price of $317,005,000 in cash payable at the closing of the acquisition, less $5,000,000 that will be deposited in an escrow fund pending final determination of any purchase price adjustment following the closing. As of August 31, 2014, Samco had approximately $319.6 million of outstanding indebtedness under its credit agreements. DHT has obtained a committed and underwritten offer from affiliates of Nordea Bank AB and DNB ASA to refinance Samco’s debt at a rate of LIBOR plus 2.5%, with leverage and repayment profiles consistent with DHT’s other debt facilities.
The closing of the acquisition is expected in September 2014.