Euronav to Acquire Metrostar VLCCs

 

The reports says that Euronav is in advanced discussions with Greece’s Metrostar to buy eight very large crude carriers, The deal to buy four of the VLCCs, plus an option for another four, will be signed as early as next week. Euronav also is in the market to buy 10 smaller Suezmax tankers from Southport, Conn.-based Principal Maritime Tankers Corp.

 

However, Euronav stated that company policy is no to comment on market speculation but it can confirm that it is in advanced discussions to acquire four VLCCs and if concluded, it would be funded from debt and existing liquidity available under revolving facilities. 

 

Euronav does not intend to issue equity in relation to this transaction. Management confirms that the Company will maintain its current dividend policy of distributing at least 80% of its annual net result. 

 

The Company has not made an offer on other vessels - specifically the Principal Maritime Suezmax vessels. Euronav will provide a further update if and when appropriate.

 

Prices for the VLCC newbuildings are unconfirmed; some brokers put the sale at $97m per vessel and some a little less.  The Wall Street Journal suggests that the 10 vessels are being acquired from Connecticut-based Principal Maritime Tankers for around $48m each. But there is no confirmation.

 

The Athens-based Metrostar currently has eight VLCCs being built at HHI, one of which will arrive this year and the rest in 2016 and 2017.

 

The Metrostar Group is also understood to be battling a poor offshore rig market in which it is involved through Deep Star Metro, a joint venture with Odfjell Offshore.