The National Shipping Company of Saudi Arabia or NSCSA (Bahri) and Aramco Vela have formed the biggest merger in the history of the kingdom.
Bahri’s CEO, Saleh N. Jasser said this at a press conference in Riyadh, adding that Aramco will own 20% of Bahri shares.
“The total amount involved is $1.3 billion. The cash payment involved is $832.7 million, including the issuance of 7.875 million new shares at SR 22.25 per share,” said Jasser.
The agreements with Aramco include a long-term shipping contract, exclusive VLCC crude oil shipping provider to Aramco sold on delivered basis and the contract includes a TCE floor and threshold, he said.
The memorandum of understanding (MoU) was signed on July 27, 2012 although the definitive transaction agreement signing took place on in April of the same year.
Bahri CEO said the first EGM approval will be in the second quarter of this year, the first ship transfer will be in the third quarter and the expected last ship transfer will be in the fourth quarter.
“Bahri has a strong balance sheet, registering net incomes of SR503 million in 2012 and SR 752 million last year,” said Jasser, adding that on crude oil transport, the company has 17 double hull VLCCs, young fleet and it’s the seventh largest VLCC owner.
Bahri which was founded in 1978 as a public company has the biggest shipping fleet in the Middle East and was recognized last year by Forbes Middle East as one of the top 500 companies in Arab world.
