United Arab Shipping Co (UASC) is considering the sale of its stake in United Arab Chemical Carriers (UACC) as part of its plans to merge with German container line Hapag-Lloyd, sources tell Bloomberg.
The Kuwait-based company hopes the sale will raise over $600m, but deliberations are ongoing, the sources said.
Bank of America Corp has reportedly been tasked with finding buyers for the holding.
UASC’s stake in the chemical tanker unit is thought to be 39.4%, with Bahrain’s Gulf International Bank, Yusuf Bin Ahmed Kanoo Holding and Qatar’s Milaha each owning 10.5% respectively.
UACC operates a fleet of four LR1s and 20 MR product tankers. VesselsValue.com today estimates the combined market value of the UACC fleet at $530.75m.
Container lines Hapag-Lloyd and UASC agreed on the terms of a merger in late June. All shares would be transferred to the German carrier as part of the deal, which has been approved by Hapag-Lloyd’s supervisory board and UASC’s shareholders.