FINANCIAL NEWS

Bahri buys Vela from Saudi Aramco for USD1.3b

28 Jun 2012

(MENAFN) Vela International Marine Limited, the marine unit of Saudi Aramco, the world’s largest oil company, is to be sold to Saudi National Shipping Company (Bahri) for USD1.3 billion in cash and shares, Trade Arabia reported.

Bahri will pay the value of the transaction with USD832.75 million in cash and 78.75 million new Bahri shares at a price of USD5.93. Bahri said it will raise the cash portion through debt financing.

President and CEO of Saudi Aramco Khalid A. Al-Falih said that Bahri will manage the merger of ships, personnel and business systems from the two firms along, in addition to managing Aramco’s very large crude carrier (VLCC) transportation system.

The deal will see Vela’s fleet including 32 VLCCs, 20 chemical tankers, 5 product tankers, 4 roll-on roll-offs (ROROs) and 16 vessels to be delivered, transferred to Bahri’s fleet, making it the world’s fourth largest owner of VLCCs.

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