Boston, MA 09/11/2014 (wallstreetpr) – DHT Holdings Inc (NYSE:DHT) announced that is has signed an agreement as per which it will acquire all the outstanding shares of private firm Samco Shipholding Pte. Ltd. It will also cover the 50% of ownership that Samco has in Goodwood Ship Management Pte. Ltd. Samco has got a fleet of large crude oil tankers. They are seven in number and have an average age of 4.5 years. Out of the seven VLCCs, five of them are on time charters to oil majors. Goodwood Ship manages all of DHT Holdings vessels.
The anticipated change
After the acquisition, DHT Holdings Inc (NYSE:DHT) will have a fleet of total 20 VLCCs, two Aframaxes and two Suezmaxes. The six VLCCs out of total 20 are under construction at Hyundai Heavy Industries. The acquisition is a significant for DHT as it will get the hold of modern high-quality vessels of Samco that also have fuel saving devices. The time charter contracts of five VLCCs are with premium counterparties. Also, the rates are at premium levels as compared to the current time charter market. Also, it will benefit from the 50% shareholding in Goodwood. The acquisition will mark the entry of technical management into DHT. As a result, DHT Holdings Inc (NYSE:DHT) becomes a fully integrated company that has got all functions under one roof.
The terms and conditions
As per the terms of the share purchase agreement, DHT Holdings will buy all the outstanding shares of Samco at a price of $317,005,000 all in cash. The deal amount will be payable at the closing of the acquisition. It will be excluding $5,000,000 as the amount will be deposited in an escrow account till the time the transaction is completed between Samco and DHT Holdings Inc (NYSE:DHT). DHT has plans to refinance Samco’s debt. The deal closing between Samco and DHT is expected in September 2014.
