(MENAFN - Arab News) The national shipping company of saudi arabia or nscsa (bahri) and aramco vela have formed the biggest merger in the history of saudi arabia according to saleh n. jasser bahri's ceo.
"the total amount involved is 1.3 billion. the cash payment involved is 832.7 million including the issuance of 7.875 million new shares at sr 22.25 per share" jasser said while addressing a press conference in riyadh. aramco will own 20 percent of bahri shares he added.
the agreements with aramco include a long-term shipping contract exclusive vlcc crude oil shipping provider to aramco sold on delivered basis and the contract includes a tce floor and threshold he said.
he added that a memorandum of understanding (mou) had earlier been signed on july 27 2012 although the definitive transaction agreement signing took place on april 11 2012.
according to him the first egm approval will be in the second quarter of this year the first ship transfer will be in the third quarter and the expected last ship transfer will be in the fourth quarter.
he noted that nscsa is the biggest shipping fleet in the middle east and that forbes middle east recognized bahri as one among the top 500 companies in arab world in 2013.
he added that bahri is the third largest vlcc owner in the world behind mosk and fredriksen.
bahri was foundedin 1978 as a public company with a rich history in building successful partnerships and world class operations and safety records.
bahri has diversified operations that include oil transport gas and offshore liquid chemical general cargo dry bulk and ship management.
he also said that bahri has a strong balance sheet registering net incomes of sr503 million in 2012 and sr 752 million last year.
he stated that on crude oil transport bahri has 17 double hull vlccs young fleet and it's the seventh largest vlcc owner.
"on lpg bahri has a 30.3 percent stake in petredec a leading lpg trader and shipowner and controls a fleet of 77 vessels under operations aggregating approximately 250000 cbm" jasser said.
he added bahri is currently exploring possibilities to enter the offshore support market.
about liquid chemicals his company established national chemical carriers (ncc) in 1990 as a joint venture between bahri (80 percent) and saudi basic industries corporation (20 percent) involving 24 tankers with an average of less than five years.
ncc is the third largest chemical carrier globally in dwt capacity according to him.
bahri has also won awards that include the seatrade awards in 2013 best managed company in the middle east in transport & shipping from euromoney and the saudi public company award in 2010.