After a long period of silence, ADS Maritime Holding suddenly can’t seem to stop splashing the cash in shipping.
The Oslo-listed investment company has announced another deal that sees it take 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.
The deal encompasses the 125,000 LNG-fuelled Eagle Blane and Eagle Balder (both built 2019) and the 120,000-dwt Eagle Bergen and Eagle Barents (both built 2015).
The latter two cost $237.5m combined in 2017.
VesselsValue assesses all four as worth $500m.
MISC’s AET unit will retain its majority shareholding and OSM Maritime, owned by ADS Maritime chairman Bjorn Tore Larsen, will continue to manage the quartet.
ADS said the shares were acquired at a discount to independent shipbroker valuations of the ships.
The acquisition is financed by an interest-free sellers’ credit repayable within two years.
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.
VLCC move in April
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.
ADS said the new deal will “both establish exposure in an additional segment in the oil and gas markets and prepare the company for further growth”.
The Eagle Balder and Eagle Blane emit 85% less SOx, 98% less NOx and particulate matter and 93% less black carbon particulates than similar shuttle tankers burning conventional fuel.
Equinor chartered the ships for seven years.