CSSC (Hong Kong) Shipping has agreed to sell two ice-breaking heavylift vessels to Red Box Energy Services and provide lease financing to the buyer.
The Hong Kong-listed lessor, a leasing arm of yard giant China State Shipbuilding Corp (CSSC), revealed in an exchange filing that the ships were sold for about $130m.
The deal involves the 24,500-dwt Pugnax and Audax (both built 2016), both of which were constructed by CSSC offshoot Guangzhou Shipyard International.
Singapore-based Red Box then sold the ships back to CSSC Shipping for the same price and bareboat chartered them in for three years for $150m.
The filing added that Red Box has an obligation to acquire the pair when the charter expires.
CSSC Shipping said the deals “are fair and reasonable, and are in the interests of the company”.
When contacted by TradeWinds, Red Box managing partner Philip Adkins said his organisation bought the vessels via an open auction after CSSC Shipping repossessed them in April.
The lessor had acquired them from ZPMC-Red Box Energy Services under bareboat leaseback arrangements in 2016.
Adkins added that Red Box is not related to ZPMC-Red Box Energy Services.
Established in Hong Kong, ZPMC-Red Box Energy Services is 51% owned by Shanghai Zhenhua Heavy Industries and 16.5% by Zhenhua Logistics Group, while RBF owns the remainder. Some of RBF's shareholders have stakes in Red Box.
Adkins had served as chief executive of ZPMC-Red Box Energy Services, but he said his status with the firm is currently “a matter that is before the court”.
Adkins said: “[The joint venture] has been overwhelmed by shareholder disputes, litigation, arbitration. And that makes a very unhealthy platform for good business.
“That has been a tremendous distraction of management. Some of the court cases are still ongoing, so it’s not really proper for me to comment.”
TradeWinds has approached Zhenhua Heavy Industries for comment, while an email seeking clarification from Zhenhua Logistics bounced back.
Looking forward, Adkins said Red Box is seeking long-term, multi-voyage business for the ships from major LNG projects.
The ships previously served Yamal LNG in Sabetta, Russia, and ExxonMobil’s Beaumont Light Atmospheric Distillation Expansion project in Texas.
“These vessels are special," Adkins said. "They are the two largest ice-breaking module carriers in the world.
“We were able to put financing together to support our bid, we have purchased the ships, and we've done a sale-leaseback ... For the next three years, we will be operating them.”
This article has been amended to reflect the correct capacity of the Pugnax and Audax and shareholders of Red Box.
