Australian shipping company Wellard revealed plans to proceed with the sale of M/V Ocean Swagman to Heytesbury Holding Company for USD 22 million.
The transaction also includes a bareboat charter of the 12,892 GT livestock carrier back from Heytesbury to Wellard immediately upon completion of the sale which is expected to complete on or before September 30, 2019.
Earlier this month, Wellard received a higher offer of USD 25.2 million for the ship from Panama-based Trim Shipping, part of Nova Marine Holdings. However, the approval of the board of Trim Shipping was not received by the deadline of August 19 and that condition precedent for a sale to Nova has not been fulfilled, Wellard explained.
As a result, the Australian live cattle exporter will sell the 2009-built vessel to Heytesbury.
“Wellard has been working productively with Heytesbury to complete the necessary documentation, and expects to agree terms for the Memorandum of Agreement for the vessel sale, and the Bareboat Charter in coming days,” the company said.
Wellard added that Heytesbury has confirmed conditions precedent, including financing, due diligence, and vessel inspection have all been achieved. Remaining conditions include finalizing a satisfactory standstill with Wellard’s noteholders, Wellard shareholder approval of the sale and lease-back, bank consents, key shareholder support and meeting Singapore law requirements.
As previously disclosed, with this transaction, Wellard aims to reduce its debt and improve financial and operating flexibility.
Ocean Swagman is part of Wellard’s fleet which comprises four livestock carriers. The 130-meter-long ship has the capacity to transport 7,000 cattle or 26,000 sheep, or a combination of both.