Stolt-Nielsen Limited announced today that Avance Gas Holding Ltd. (AGHL), a joint venture between Sungas Holdings Ltd. and Stolt-Nielsen Gas Ltd. has reached an agreement with Transpetrol Shipping Ltd. (Transpetrol) whereby Transpetrol will sell its two very large gas carriers (VLGC) to AGHL in return for cash and 33 1/3 equity ownership of AGHL.
Post completion ownership of AGHL will be shared equally by the three shareholders. It is expected that the two new ships, Prospect and Progress, both delivered in 2009, will join the AGHL fleet in early July.
With Prospect and the Progress, the Avance Gas fleet will consist of nine VLGCs, including the two ships to be acquired from Maran Gas Maritime Inc. The Avance Gas fleet trades mainly in the spot market, loading in the Middle East for destinations primarily in Asia.
Commenting on the transaction, Mr. Niels G. Stolt-Nielsen, Chief Executive Officer of SNL , said:
“We are pleased to have reached this agreement with Transpetrol which is another step in AGHL’s stated strategy of consolidating the VLGC market through mergers and acquisitions of second hand ships. As the fundamentals for the transportation of LPG continues to look favorable for the next several years we believe the strategy to focus on second hand tonnage with prompt delivery versus ordering new ships for delivery several years in the future, will offer a better return to the joint venture partners.”
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Source: Stolt-Nielsen, June 27, 2012