Middle East

Bahri and Vela merger finally complete

Doha: The National Shipping Company of Saudi Arabia or NSCSA (Bahri) and Saudi Aramco 's subsidiary, Vela International Marine, have completed their $1.3bn merger, Saleh N. Jasser, Bahri's CEO, said Tuesday.

"The total amount involved is $1.3bn. The cash payment involved is $832.7m, including the issuance of 7.875m new shares at SR22.25 per share," Jasser said at a press conference in Riyadh.

Aramco will own 20% of Bahri’s shares, he added.

Under the merger, Saudi Aramco is transferring its entire Vela fleet of 14 double-hull very large crude carriers (VLCCs), one VLCC used as a floating storage; five products carriers giving Bahri a 77-strong fleet.

Saudi media say that the merged entity is now the third largest VLCC owner in the world.  [19/06/14]

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