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Nordic Tankers to sell chemical tanker operations to Triton.

MANews-(C)2009-2012

27 March 2012 - Danish shipping company Nordic Tankers A/S (CPH:NORDIC) said today it had sealed a conditional deal to sell its chemical tanker business, including the related organisation, for USD30m (EUR22.5m) to a company owned by European investor Triton.

The sale follows talks between Nordic Tankers its banks prompted by the companya[euro](tm)s high debt and continuing low freight rates, the vendor said in a press release. The transaction is pending antitrust and shareholder approvals and is expected to be completed in May 2012. Following the sale, the company will become a tonnage provider in the product tanker sector.

The company would sell its nine owned chemical tankers, the six in-chartered chemical tankers, all affreightment agreements and the Nordic Tankers organisation including its 140 employees. Two-thirds of the purchase price will be lent to the firm to be established, which will own the nine chemical tankers. This will allow the buyer to lower the debt position and ensure cash-break-even in this entity, Nordic Tankers said.Country: DenmarkSector: Water TransportTarget: Nordic Tankers' chemical tanker businessBuyer: TritonVendor: Nordic Tankers A/SDeal size in USD: 30m

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Publication:M & A Navigator
Date:Mar 27, 2012
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