TIL’s Shareholders Cash In on VLCCs Sale
- Business & Finance
Oslo-listed Tanker Investments Ltd. plans to reap around USD 50 million in net proceeds for its shareholders from the sale of the VLCC duo to National Shipping Company of Saudi Arabia (Bahri).
TIL confirmed the sale in a stock exchange filing today, saying that it has agreed to sell its two 2010-built VLCCs, the Hemsedal Spirit and Voss Spirit, for gross proceeds of USD 77.5 million each with delivery to the buyers expected to occur during the second half of January 2016.
“With the sale of our two VLCCs, we have now executed on this opportunistic investment, generating a significant return for the company,” commented William Hung, Tanker Investments’ Chief Executive Officer.
“We acquired these ships for USD 77 million each in May 2014 and during this time we have generated a total of approximately USD 30 million in cash flow, helping to increase the company’s net asset value per share.”
However, according to Hung, the company is no longer pursuing additional investments in tanker assets, and soon after closing these vessel sale transactions and repaying the associated debt, the company intends to return the expected net proceeds of approximately USD 50 million to shareholders.
Tanker Investments Ltd. is a specialized investment company focused on the tanker market, formed in January 2014 to acquire, operate and sell modern secondhand tankers. The company is planned to be sold.