On 15 July 2024, Danish pure play product tanker company TORM has entered into an agreement to acquire eight second-hand MR vessels that are expected to be delivered during Q3 2024 and Q4 2024 for a total consideration of USD 340m, with a cash consideration of USD 238m and the issuance of approximately 2.65 million shares. The purchase price is subject to certain adjustments that will be impacted by TORM’s share price development and the vessels’ delivery schedules.
The vessels have all been built at the Tier 1-Korean yard Hyundai Mipo Dockyard in 2014-2015, and six of the vessels have been fitted with scrubbers. The cash element of this transaction will be financed through traditional bank financing.
TORM has, since the release of our Q1 2024 results, sold one 2006-built MR tanker for delivery in Q3 2024 for a cash consideration of USD 23.3m.
“We are pleased to once more announce a partially share-based transaction to acquire vessels. Since 2021, TORM has utilized partially share-based transactions to expand the fleet, even before the product tankers market took off. This model highlights the strong trust the sellers have in our One TORM platform and their firm belief in market fundamentals,” says Jacob Meldgaard, Executive Director and CEO.
