EURONAV to purchase 4 VLCCs

By Finance

EURONAV has decided to acquire four modern Japanese-built VLCC (Very Large Crude Carrier) vessels for an estimated purchase price of USD 342 million. The company follows its plan to strengthen its position on the market as the leading listed crude tanker firm.

The new additions to the fleet of EURONAV (vessels are on average 3 yeas old) are considered the best purchase of second hand vessels available nowadays. Three of the vessels are expected to be delivered at the end of 2014 and the last 4th vessel is planned for delivery at the second quarter of 2015.

The money needed for this acquisition will come partly from funds raised through a private placement of new shares within the authorised capital. Investors will be allowed to acquire shares. EURONAV plans to raise USD 100 million in this undertaking. The rest of the needed capital for the purchase of the four vessels is expected to come from a USD 200 million bank debt.

The company acting as a Settlement Agent, Petercam NV, has to deliver available shares to the investors who will receive their shares. The final amount of shares and their price will be calculated on completion of the book building procedure.

The Belgian tanker company (EURONAV) will increase the number of vessels (very large crude oil tankers) in its fleet to 17 (the 4 vessels included). At this time, the company has 24 VLCCs plus one through a joint venture, and 27 Suezmaxes, 4 of which are via a joint venture. EURONAV is owner, operator and manager, at the same time, offering various shipping services.