Norwegian publicly traded investment company Hunter Group ASA has entered into a definitive back-to-back contract transfer agreement with Apollo Asset for the transfer of shipbuilding contracts for four very large crude carriers (VLCC).
The decision comes following Apollo’s non-binding indicative offer to Hunter Group ASA for the transfer of ownership in up to seven VLCCs at the beginning of April, as the contract includes options for up to three additional newbuildings.
Apollo, owned by independent investor Arne Fredly, who is also a board member of Hunter Group, ordered the ships from Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) in February this year.
The 300,000 DWT ECO Design crude oil tankers, fitted with scrubbers, are scheduled for delivery in 2019 and cost USD 85.2 million each.
Under the contract, Apollo has an option to order three additional ships of the same size, which if exercised would be handed over in 2020.
The group plans to transfer the contracts to its subsidiary Hunter Tankers AS, a decision which is yet to be approved at the group’s general meeting scheduled for May 9.
The general meeting’s agenda also includes a decision on whether to approve a private placement of NOK 172.5 million (USD 21.6 million) directed towards co-investors in the shipbuilding contracts and approving the issuance of warrants. Once the transaction is approved, Apollo will be entitled to subscribe for a total of 15,000,000 shares in Hunter Group.