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UAE-based logistics group, Tristar, has agreed to acquire Abu Dhabi-headquartered Emirates Ship Investment Company, better known as Eships, from the Oldendorff Group for US$ 90 million.
Under the terms of the deal, Tristar will purchase a fleet of seven ocean going chemical tankers which includes two LPG tankers under long term time charter to an oil major. These vessels will be phased into the company’s existing fleet and then fixed out long term in line with company policy.
“This acquisition is a perfect fit to our longer term plans to diversify revenue and make ship owning an integral part of our strategy to build a fully integrated liquid logistics business,” says Eugene Mayne, group chief executive of Tristar.
Oldendorff has made a strategic decision to focus on the dry cargo shipping business and so having a taker company in its portfolio did not fit with its long term vision.
In a related move, Tristar is due, from May this year, to start taking delivery of six brand new 50,000 dwt tonnes clean petroleum product tankers from Korean builder Hyundai Mipo Dockyard. These represent an investment of around US$ 200 million.
This acquisition of Eships and the newbuilding program, together with its existing fleet, will take the Tristar-owned shipping fleet to more than 20 vessels.
Oldendorff will retain close links with the UAE. Oldendorff Carriers is one of the world’s leading dry bulk operators, with 500 bulk carriers, supported by 17 offices around the world. Oldendorff Carriers has recently expanded its office in Dubai by adding a team of drybulk professionals and also has its EOL subsidiary in Abu Dhabi which provides transshipment and lightering services to industrial customers in the Arabian Gulf.
