In order to strengthen the balance sheet, Ocean Yield ASA has entered into an agreement with Aker Capital AS (“Aker”) whereby Aker will acquire from Ocean Yield 50% of 7 tankers with long-term charters. The Joint Venture (“JV”) will own four LR2 product tankers with long-term charter to the Navig8 Group and three suezmax tankers with long-term charter to Nordic American Tankers Ltd., the company said in its release.
Aker will pay USD 10.2 million for 50% of the shares in two new holding companies, which is equal to the book values. Ocean Yield will continue to guarantee the senior secured bank debt against a guarantee fee.
The JV will be accounted for as an investment in an associated company and will strengthen Ocean Yield’s equity ratio with more than 2% points as the JV’s bank debt will no longer be consolidated. Due to the low amount of new capital raised in the transaction, the impact on net profit will be limited.
The transaction is conducted on arm’s lengths basis and in accordance with Ocean Yield’s principles for related party transactions. Skandinaviska Enskilda Banken AB (“SEB”) has provided fairness opinion for Ocean Yield. The transaction is subject to final documentation.