Stolt Tankers Ready to Seize Merger & Aquisition Opportunities
As the separation of Stolt Tankers as a stand-alone company from Belgium’s Stolt-Nielsen Limited (SNL) nears completion, the company is ready to pursue merger and acquisition opportunities that might come its way.
“Now we are ready to do another deal, meaning either acquiring a competitor or merging with a competitor using shares instead of cash,” Niels G. Stolt-Nielsen, SNL’s Chief Executive Officer, said while speaking in a conference call on the company’s results.
“If that doesn’t happen, we are also ready to do an initial public offering (IPO) if we chose to.”
Stolt-Nielsen further added that the company is laying the groundwork to be able to pursue an opportunity quickly.
“Had we not separated out, it would have taken us one year to do a carry out a potential acquisition,” he explained.
With regard to a potential IPO, Stolt-Nielsen said that even though the option is on the table, it has not been considered as an item on the agenda. This is in particular, as the timing of an IPO needs to be right, however, considering the current situation on the chemical tanker market, now is not the best time to do it.
“We would prefer to pursue consolidation opportunities as there is very much room in the market for the consolidation to take place and it would be beneficial for everyone,” he further added.
Nevertheless, if those efforts don’t bear fruit the company would turn to an IPO.
Stolt Nielsen stressed it intends to remain a majority owner in its chemical tanker business.
Oslo-listed Stolt-Nielsen Limited reported USD 49.2 million-worth net profit for the first nine months of 2017, considerably lower from USD 90.3 million posted in the corresponding period of 2016.
Stolt Tankers’ third-quarter operating profit was USD 34.4 million, up from USD 27.6 million in the second quarter of 2017 and corresponding quarter of 2016 when it booked USD 31.4 million. For the nine-month period, the tanker division’s profit reached USD 90.5 million against last year’s USD 108 million.
World Maritime News Staff