DHT Holdings acquires Samco Shipholding for $317m
Crude oil tanker company DHT Holdings is set to acquire all of the outstanding shares of Singapore-based private company Samco Shipholding.
Samco Shipholding was established in 2008 and owns a fleet of seven very large double-hull crude oil tankers (VLCC) with an average age of approximately 4.5 years.
The acquisition agreement also includes Samco's 50% ownership in another Singapore based Goodwood Ship Management.
DHT senior management said: "The Samco fleet consists of modern, high-quality vessels all being fitted with fuel saving devices.
"The time charter contracts are with first-rate counterparties and are at premium levels to the current time charter market.
"With the 50% shareholding in Goodwood bringing technical management into DHT, we are now a fully integrated ship owning company with all functions in-house."
The purchase price of the acquisition is $317m, of which less than $5m will be deposited into an escrow fund pending the final determination of any purchase price adjustment after closing.
Samco's debts amount to approximately $319.6m under the company's credit agreements. DHT has obtained a committed and underwritten offer from affiliates of Nordea Bank AB and DNB ASA to refinance Samco's debt at a rate of LIBOR plus 2.5%, with leverage and repayment profiles consistent with DHT's other debt facilities.
Following the acquisition, DHT's VLCC fleet will increase to 20, which will include the six currently under construction,two Suezmaxes and two Aframaxes.
The acquisition is expected to be completed this month and is subject to various customary closing conditions.