TORM to Acquire Eight MR Vessels in $340 Million Deal

Product tanker operator TORM has agreed to acquire agreed to acquire eight second-hand Medium Range (MR) tankers for $340 million.

Delivery of these vessels is expected in Q3 and Q4 of 2024. The purchase price comprises $238 million in cash and the issuance of approximately 2.65 million shares. The purchase price is subject to adjustments based on TORM’s share price development and the vessels’ delivery schedules.

The vessels, built between 2014 and 2015 at the Tier 1-Korean yard Hyundai Mipo Dockyard, include six that have been fitted with scrubbers. The cash component of this transaction will be financed through traditional bank financing.

Additionally, TORM has sold a 2006-built MR tanker for delivery in Q3 2024, securing a cash consideration of $23.3 million.

“We are pleased to once more announce a partially share-based transaction to acquire vessels. Since 2021, TORM has utilized partially share-based transactions to expand the fleet, even before the product tankers market took off. This model highlights the strong trust the sellers have in our One TORM platform and their firm belief in market fundamentals,” said Jacob Meldgaard, Executive Director and CEO.

TORM is one of the world’s leading carriers of refined oil products, operating a fleet of approximately 90 product tanker vessels. TORM’s shares are listed on Nasdaq in Copenhagen and on Nasdaq in New York.