Dubai-based shipping company Gulf Navigation Holding (GulfNav) plans to buy four livestock carriers in an effort to diversify its commercial operations.
The company received the green light for the planned acquisition at the board of directors meeting held today.
As informed, the ships will be bought for AED 420 million (around USD 114.3 million).
What is more, GulfNav will start the procedures for the issuance of Islamic convertible sukuk for a value of AED 100 million by way of a private placement to Wahat Al Zaweya Investment & Real Estate Development. The sukuk will be converted into the shares in the company.
With this move, GulfNav intends to finance its expansion operations through finalizing the construction of new oil tankers and purchasing the new ships to transport livestock.
Earlier this month, the company announced its financial results for the third quarter of 2018 showing that GulfNav suffered a loss of AED 3 million, compared to a profit of AED 12.4 million seen in the corresponding quarter a year earlier.
During the first nine months of this year, the company posted a loss of AED 17.8 million, against a profit of AED 31.4 million reported in the corresponding nine-month period last year.
According to VesselsValue’s data, GulfNav currently has four 50,000 dwt MR2 tankers on order at Wuchang Shipbuilding Industry Group in China, scheduled for delivery in 2018 and 2019.