Norway’s ADS Maritime Holding has revealed a series of new deals in the pipeline as it continues to ramp up activity after a period of hibernation.
The Oslo-listed company has brought in investment bank Arctic Securities to run a share offer that will raise NOK 100m ($10m) for further vessel acquisitions.
The price is NOK 2.10 per share, against a close of NOK 2.08 on Wednesday.
The cash will go towards investments in shipping assets.
Chairman Bjorn Tore Larsen’s holding company BT Larsen & Co, which has a 28.2% stake, is underwriting the offer.
The investment company will receive an underwriting fee of 1.5% of the NOK 100m.
The offer closes on Friday and ADS will carry out a subsequent offering of shares by the underwriter to keep its stake at the same level.
The company is currently negotiating the acquisition of a 20% stake in three Chinese-built 13 and 14-year-old LR2/coated aframax tankers, currently under commercial management.
The ships will be chartered on market terms for a period of up to three years by a third party, ADS said.
“The company considers the indicative terms to be attractive with downside protection and upside potential,” the company added.
LNG carrier newbuilding project
In addition, ADS has signed a letter of intent in connection with the construction of two LNG carriers.
The company will provide management services to the owner, an unnamed large financial investor.
ADS will be granted an option to purchase a minority stake in the vessels.
The company said it will continue to develop investments, using its record with “first-class counterparties as part of its long/short term investment strategy.”
ADS has identified other investment opportunities within crude and product tankers, shuttle tankers and LNG.
It had previously said that bulkers could be on the menu too.
In June, ADS took over its parent Arendals Dampskibsselskap’s (ADS Shipping) 5% stake in a fleet of modern shuttle tankers.
The vessels, mainly on long-term charter to Norway’s Equinor, are owned by the joint venture AET Sea Shuttle (AETSS) formed by Malaysia’s MISC and ADS Shipping in 2012.
At the end of May, ADS bought a 20% stake in a chartered-in scrubber-fitted MR vessel that will trade in Navig8’s MR pool for a firm period of 36 months.
The deal followed an April purchase of 20% of a VLCC that is also being commercially operated by Navig8 for up to two years.
This was ADS’ first new investment since selling a trio of VLCCs more than 18 months ago.
The company had always said a new share offer was likely to raise money for new deals.
