Hunter Group to Collect USD 65 Mn for VLCC Instalments

Norway’s Hunter Group ASA is looking to raise up to USD 65 million to finance instalments on seven very large crude carrier (VLCC) newbuilding contracts.

The company said that it is contemplating a private placement of new shares for gross proceeds of NOK 520 million (USD 65 million).

Apart from financing the instalments for new vessels, the company said it would use the net proceeds for general corporate purposes as well.

The private placement will be directed towards investors “subject to and in compliance with applicable exemptions from relevant prospectus or registration requirements.”

Apollo Asset Ltd., a company controlled by Arne Fredly, has pre subscribed for and will be allocated offer shares for an aggregate amount of NOK 100 million (USD 12.5 million).

Last month, Hunter Group entered into a definitive back-to-back contract transfer agreement with Apollo Asset for the transfer of shipbuilding contracts for four VLCCs. Previously, Apollo had offered to transfer ownership of up to seven VLCCs to Hunter Group.

In early May, Hunter Group decided to exercise options for the construction of three additional VLCC at Korean shipyard Daewoo Shipbuilding and Marine Engineering (DSME).