German dry bulk giant Oldendorff Carriers has agreed a package deal with Singapore-based Trust Energy Resources, a subsidiary of Tata Power Company, to acquire three bulk carriers for a total price of $212.76m.
The Trust Amity (built 2016), Trust Agility (2011) and Trust Integrity (2011), which have a total market value of $78.43m according to VesselsValue, will be delivered within the next few weeks. The deal also includes long-term contracts of affreightment for Oldendorff to transport coal to India.
Tata Power said the objective of the transaction is to have an asset-light model for the shipping requirements of the company.
Praveer Sinha, CEO of Tata Power, commented: “The sale of our shipping assets announced today is in line with our long term plans to reduce debt and raise funds to invest in our future growth plans, including expanding our presence in the renewable energy business.”
Peter Twiss, president and CEO of Oldendorff Carriers, stated: “The deal is a testament to our customer commitment. We appreciate very much our relationship with Tata Power, and we are pleased to extend it further. The Tata group is one of the most respected companies in the world and it is great to be part of reaching their strategic objectives. At the same time, we are strengthening even further our trades in/out of India. We see India as one of the drivers for the years to come for the dry bulk market, and we want to be part of that growth.”