Stolt-Nielsen Gas to Enter Joint Venture with Sungas Holdings Ltd., Adding Three VLGCs to Fleet

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

20 Nov 2010

Stolt-Nielsen Limited ("SNL") announced Friday that its subsidiary Stolt-Nielsen Gas Ltd. ("SNGL") has reached an agreement with Sungas Holdings Ltd. ("Sungas") whereby Sungas will become a 50% shareholder in Avance Gas Holdings Ltd . ("Avance Gas") currently wholly owned by SNGL. As part of the transaction, Avance Gas will acquire three VLGCs from Sungas, for which Sungas will receive an undisclosed amount of cash, in addition to its 50% stake in Avance Gas. The transaction will be financed by shareholder loans from both partners until such time as external bank financing can be secured.
The transaction is expected to close in December 2010, subject to due diligence and merger clearance.
The three VLGCs from Sungas will be added to the fleet of Avance Gas, which currently owns one VLGC, operates a second VLGC, and also time charters a medium-sized gas carrier. Three of the ships are currently engaged on long-term time charters, and the remaining three ships will be traded in the spot market. The Avance Gas-controlled fleet will comprise:
Ship Yr. Built CBM Yard Ownership Stolt Avance 2003 82,200 Kawasaki 100% Iris Glory 2008 83,000 Daewoo 100% Thetis Glory 2008 83,000 Daewoo 100% Venus Glory 2008 83,000 Daewoo 100% Yuhsho 1999 78,000 Mitsubishi Chartered Navigator Taurus 2009 22,550 Hyundai Chartered
Niels G. Stolt-Nielsen, Chief Executive Officer of SNL, said, "This transaction is in line with our stated strategy of consolidating a shipping segment that is highly fragmented. I am pleased to have Sungas as shareholders in Avance Gas, creating a strong player in the industry."
Sungas is controlled by a private Saudi Arabian investor and was advised by Lazard on the transaction. A Sungas representative said, "This transaction takes our shipping investments into a new era. We are very pleased to join forces with Stolt-Nielsen. We are enthusiastic about the VLGC sector and fully support the business and growth plans of Avance Gas."

Source: Stolt-Nielsen Gas Ltd