Bahri Takes Over Sixth VLCC from Vela

The National Shipping Company of Saudi Arabia (Bahri) has acquired six vessels from the Vela fleet with the latest VLCC transferred to Bahri’s ownership that took place on Monday 8 September 2014.

The latest fleet addition is former Pisces Star, now renamed to Hilwah.

Bahri said it would 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 USD 467,250,000) in favor of Saudi Aramco Development Company for the five previously delivered vessels and part of the value of Hilwah.

An announcement will be published once the processes are finalized and the effective date of the increase in share capital is known, Bahri added.

Further, a cash consideration of  USD 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 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,” Bahri explained.

Bahri said the financial impact is expected during the third quarter of 2014.