Saudi Arabian state shipping giant Bahri is believed to be at the front of the queue for four modern VLCCs put up for sale by Korea Line Corp.
Expressions of interest and price ideas were invited by 10 April for three tankers built in South Korea in 2019 and one in 2020.
Sources told TradeWinds that between seven and 10 buyers are in the race.
Korea Line said in its tender that an en-bloc sale is preferred.
The best offer is said to have been received from Bahri at $430m, which would undercut the valuations of around $478m quoted by VesselsValue.
The broker handling the business in the South Korean office of a London broking group has remained tight-lipped.
TradeWinds is told the top few potential buyers could be invited to inspect the tankers in May. Another source said inspections could take place from Sunday.
One broker described the sale-and-purchase market as “nuts currently, given that everyone has money to burn”.
Other names mentioned in connection with the business include Angelicoussis Group’s Maran Tankers, Evangelos Marinakis’ Capital Ship Management and the John Fredriksen group.
Bahri, which has 38 VLCCs, has been contacted for comment.
New benchmark expected
The vessels seem likely to establish a new secondhand price benchmark in what is still a very firm S&P environment for younger ships.
Tender documents seen by TradeWinds showed that the tankers are the 300,800-dwt sister ships SM White Whale 1 and SM White Whale 2, and the 299,700-dwt SM Venus 1 (all built 2019) and SM Venus 2 (built 2020). All are scrubber-fitted.
Korea Line, owned by SM Group, could achieve a bumper payday, as it has owned the vessels since delivery.
The SM Venus duo cost only $85m each to order and the other two just $88m.
Big appreciation in value
The quartet has gained nearly $120m in value over the past two years.
These are the South Korean owner’s only VLCCs, although the fleet does number 39 other vessels, including bulkers, a handysize tanker, LNG ships and car carriers.
The tankers will be the first VLCCs of this vintage to be sold since December, when a number of ships changed hands for $114m and $116m.
In December, Bahri bought four VLCCs built in 2019, two each from VS Tankers and Thenamaris, with the price given as $114m apiece.
Unidentified Middle Eastern interests were then said to have snapped up the 300,000-dwt Delos (built 2019) for $116m from the fleet of Embiricos family-controlled Aeolos Shipmanagement.
