Photo: Image Courtesy: Torvald Klaveness

Klaveness Combination Carriers Eyes More CLEANBU Newbuilds

Newly formed Klaveness Combination Carriers is launching a contemplated private placement of shares with total gross proceeds of approximately USD 45-70 million as part of its fleet growth initiative.

As disclosed, current investors, management and previous CABU investors will subscribe for USD 25 million.

The company was launched in April 2018 to own and operate modern combination carriers by providing environmentally friendly transportation system with the lowest carbon emissions in the industry, as explained then by Klaveness.

To do so, the company is building a new generation of green vessels compliant with the latest ballast water management and sulphur reduction regulations. Namely, the combination carrier owner and operator has nine CABU vessels in operation and five CLEANBU vessels on order.

Klaveness Combination Carriers holds several options for CLEANBU vessels at Jiangsu New Yangzi Shipbuilding Co. in China, which are “attractively priced”.

“KCC intends to use the proceeds from the contemplated private placement to declare one or more options for the construction of further CLEANBUs,” the company announced.

“The additions of the CLEANBUs to the fleet will further strengthen KCC’s competitive position in the Caustic soda market and facilitate the expansion into the CPP market. Our unique service offering will give potential CPP customers substantial freight savings, high quality operation and a far more environmentally friendly transportation solutions than standard tankers,” says Engebret Dahm, Managing Director of KCC, said.

The additional ships have scheduled deliveries between 3Q 2020 and 1Q 2021.

“KCC has several attractive growth opportunities and we are happy to invite new investors to join the growth and development of this company. With its superior customer value and investor return, we believe this is a unique opportunity to capitalize on a solid business platform perfectly positioned for increasing fuel costs and increasing environmental awareness,” Lasse Kristoffersen, CEO of Torvald Klaveness and Chairman of KCC, added.

The application period for the private placement is expected to on September 21, 2018. Once the transaction is completed, Klaveness Ship Holding AS (KSH) will own above 50% of the share in KCC, remaining the controlling owner.