Qatar Shipping, Qatar Navigation announce Board decisions to proceed with merger

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

31 Jan 2010

Qatar Navigation Company Q.S.C. and Qatar Shipping Company Q.S.C. announced that the Boards of Directors of the two companies have approved moving forward with a proposed merger of the two companies. The Boards of Directors have approved an exchange ratio of 2.2 shares of Qatar Shipping for each share of Qatar Navigation.
The intent to explore a potential transaction was first announced in November 2008. A Steering Committee was formed to consider the evaluation done by advisers who were appointed to study the potential transaction. The decision to move forward and agreement as to an exchange ratio was arrived at, further to the advice of the Steering Committee, following a thorough evaluation process. The merger evaluation phase of the proposed merger process has therefore been completed and the next phase for the implementation has now begun.
The transaction remains subject to finalization of structuring matters, negotiation of the terms of definitive merger documentation, approval by the shareholders of both companies, full regulatory and legal approval and customary closing conditions. Further announcements will therefore be made available in due course.

Source: Qatar Shipping