Vela transfers VLCC Pisces Star to Bahri's ownership
Subsequent to The National Shipping Company of Saudi Arabia (Bahri) announcement on 21 July 2014 relating to merging the Vela fleet and operations with Bahri, Bahri announces that (Pisces Star), one of the VLCCs in Vela fleet, was transferred to Bahri's ownership on Monday 8 September 2014 and her name was changed to (Hilwah), the company said in its press release.
This marks the completion of transferring the ownership of six vessels, including (Hilwah), to Bahri from Vela. As set out in the prospectus and the transactions agreements, Bahri will notify the concerning authority parties to issue 78,750,000 shares of the share capital increase, with an agreed price per share valuation of SAR 22.25, with a total value of SAR 1,752,187,500 (equivalent to US$ 467,250,000) in favor of Saudi Aramco Development Company for the value of the 5 previously delivered vessels and part of the value of (Hilwah), and an announcement will be published once the processes are finalized and the effective date of the increase in share capital is known.
Further, a cash consideration of SAR 81,675,000 (equivalent to US$ 21,780,000) has been paid to Vela to cover the remaining value of (Hilwah), all of which was financed by a Murabaha bridge financing signed and announced on Tadawul website on 22 June 2014. The remaining Vela vessels shall be transferred to Bahri on a staggered basis according to an agreed upon vessel delivery schedule with Vela and is expected to be completed before the end of 2014. The financial impact is expected during the third quarter of 2014.
