Hafnia Limited has entered into a share purchase agreement to acquire all outstanding shares in Chemical Tankers Inc, thereby taking over control of CTI’s fleet of 32 modern and fuel-efficient IMO II product/chemical tankers -the “CTI fleet”.

The CTI fleet consists exclusively of high specification ECO design vessels, constructed at leading shipyards, and is comprised of the following:

• 6 x MR (49,000 dwt) IMO II coated tankers built in Korea between 2015 and 2016
• 18 x Handy (38,000 dwt) IMO II coated tankers built in Korea between 2015 and 2016
• 8 x Intermediate (25,000 dwt) IMO II Stainless Steel tankers built in Japan between 2016
  and 2017

In exchange for all outstanding shares in CTI, CTI’s shareholders will receive shares in Hafnia representing 21.5% of the outstanding shares in the combined entity. The Consideration has been determined through a NAV for NAV framework, based on broker values and Q1 2021 balance sheets adjusted for other assets and liabilities within each business. Following the Transaction, and based on the current shareholding in CTI, CTI’s major shareholder, funds managed by Oaktree Capital Management, L.P., will hold 20.4% of the shares in the combined entity.

Hafnia has long been an advocate of consolidation. The Transaction underscores Hafnia’s commitment to grow its platform to maximise stakeholder value. Consolidation enables Hafnia to achieve improved earnings capability through the shipping cycle. Most importantly, the Transaction will complement Hafnia’s existing commercial activities in the Handy and MR segments whilst enabling enhanced trading flexibility through the ability to carry both clean petroleum products and chemicals, limiting ballast time by optimising triangulation and offering material cost synergies.

“The addition of the CTI fleet will help enhance our resilience in the face of volatile markets and create a more sustainable and future-proof transportation business that will include the ability to transport methanol, in addition to many other cargoes. I am grateful to Oaktree and the deal teams on both sides for their hard work towards the completion of the Transaction.” said Hafnia CEO Mikael Skov.

For CTI’s shareholders, the Transaction represents an opportunity to enhance its returns through access to greater economies of scale, lower cost of debt and upside exposure to a recovering product tanker market.

“This merger is the culmination of a thorough strategic process. It will allow CTI shareholders to benefit from the scale and commercial capabilities of Hafnia, while enabling Hafnia to expand its platform with a sizeable and young ECO design IMO II product/chemical tanker fleet. The addition of the CTI fleet brings with it new trading capabilities which, combined with Hafnia’s existing fleet and platform, will enhance the combined group earnings generation. We believe we’ve identified a best-in-class partner in Hafnia and are excited to embark on a promising journey alongside the BW Group and other Hafnia shareholders.” said Guillaume Bayol, Managing Director at Oaktree.

The Transaction remains subject to consent or waivers from some of CTI’s existing financiers, and Hafnia expects the Transaction to close before the 1st of February 2022. Following the Transaction, Hafnia will operate a fleet of 233 product and chemical tankers, making it the world’s largest operator in the product and chemical tanker segment. Its owned and chartered-in fleet will grow to 133 product and chemical tankers ranging in size from 25,000 dwt to 115,000 dwt. The Transaction will reduce the average age of Hafnia’s fleet to 7 years and increase the proportion of ECO ships in the Hafnia fleet.

This Transaction marks a significant milestone on Hafnia’s journey towards more sustainable shipping, contributing to ongoing efforts to modernise the fleet and introduce operational efficiencies resulting in improved environmental performance. The Company continues to be on track to achieve the IMO’s 2030 goal of a 40% reduction in carbon intensity by 2028.

The Company has retained Gorrissen Federspiel and Advokatfirmaet Thommessen as legal advisors, while CTI has retained Fearnley Securities and PJT Partners as financial advisors, and Linklaters LLC and Advokatfirmaet Wiersholm as legal advisors in connection with the Transaction.

Tradebe Port Services, a leading hydrocarbon storage operator in Spain announces the acquisition of 100% of the share capital in TWG Tanklager Wilhelmsburg GmbH, a provider of chemicals storage tanks in the Seaport of Hamburg, Germany.

The Tradebe Port Services is part of the Tradebe company. With the acquisition of TWG, Tradebe Port Services expands its geographical presence into Germany and improves its services to its customers, as it can now store a broader array of products with a larger total capacity in two prime locations.

TWG was acquired from BDH Biodiesel Hamburg GmbH, an entity controlled by Dr. August Oetker KG. TWG is one of the few remaining independent bulk liquid storage terminal operators in the heart of the Port of Hamburg, the third largest port in Europe. The Company operates a depot of 14 storage tanks with a capacity of 34,500m3 employing eight people. Furthermore, TWG has a permit to expand the capacity by additional 40,000m3. The terminal is permitted to store class B hydrocarbons, chemicals and specialty chemical products. The facility is connected to a 9-metre drought jetty able to moor sea going vessels up to 230m length overall, the railway network as well as to the road via road tankers.

Mr. Josep Creixell, Chairman of Tradebe: “We are delighted with this acquisition as it allows to expand our storage terminal business in the strategic Port of Hamburg. This acquisition fits well with our strategy of providing a flexible and customized service to our clients and stakeholders, whilst enlarging the range of services into chemicals and specialty chemicals. Furthermore, the acquisition strengthens the presence of our Group in the German market, a key geography for our group’s growth strategy. We see very attractive opportunities to develop new projects in TWG.”

Dr. Heino Schmidt, CFO of Dr. August Oetker KG:” We are glad to have found a good new home for TWG Tanklager Wilhelmsburg. Tradebe Port Services is a strategic player, family-owned, and able to provide a good platform from which TWG Tanklager Wilhelmsburg will be able to grow and prosper. “

“TWG is an important building block for the universal port of Hamburg,” says Michael Westhagemann, Senator for Economics and Innovation of the Free and Hanseatic City of Hamburg. “I am pleased that with Tradebe a new owner has been found who will keep the company and jobs and who would like to expand further at the location in the Port of Hamburg. This decision is based on the fact that a dynamic future awaits the Port of Hamburg that fits into the strategic direction of the company. ”

Stolt-Nielsen Limited announced that Stolt Tankers B.V. has agreed to acquire five chemical tankers from Chemical Transportation Group for trading in the Stolt Tankers Joint Service.

The five ships, which are 26,000 dwt and with stainless steel cargo sections, were built in China in 2016 and 2017.  The purchase of each ship is expected to close between December 2020 and February 2021. Further terms of the transaction were not disclosed.

Commenting on the purchase, Stolt Tankers President, Lucas Vos, said

“This acquisition is an excellent opportunity for Stolt Tankers to replace ships being retired in the next few years, lowering our fleet age profile with competitively priced ships that can trade in any of our deep-sea lanes. Newer, fuel-efficient ships help us reduce our carbon footprint while buying existing tonnage means capacity is not added to a market that doesn’t need it.  In a cyclical industry like ours, buying the right ships at the right price is the path to financial sustainability.  In the end, Stolt Tankers’ customers are the real winners in this deal, as these ships will support our proven platform that provides a high quality, reliable and flexible service offering.”