Sealift's total investment before conversion of vessel five and six will be $476 million, adjusted for working capital. The company will be financed through a combination of the $180 million raised in equity, a $110 million bond facility, bank loan and a short term seller credit from Frontline which will be repaid when the vessels have been delivered converted from the yard.
In order to complete this transaction Frontline and Ship Finance International Limited ("Ship Finance") has agreed to terminate the long term lease arrangement between the parties for five of the vessels involved in this deal. Frontline will buy out the outstanding lease commitments for these five Suezmax vessels for $183.7 million and will in addition receive $62.4 million from Ship Finance as a compensation for the termination of the charters. The termination payment is based on the profit-sharing agreement between the two companies.
The net profit and liquidity effects for Frontline of the transaction and the long term earnings effect can not be estimated at this stage. This will depend upon the cost and timing of the conversions, the results from the bareboat charters and most importantly the value development of Frontline's investment in Sealift.
It is expected that the completion of the transaction and the participation in Sealift will contribute materially positive to Frontline's earnings and liquidity short term as well as strengthen the Company's balance sheet and dividend capacity long term.
Chief Executive Officer of Frontline Management AS, Mr. Bjoern Sjaastad says in a comment: We are very pleased with this transaction and the response Sealift got in the market. We have through the transaction proven the point that there is significant value enhancement in finding alternative use of single hull tonnage.
Frontline will as a major shareholder in Sealift use its influence to seek further consolidation in the heavy lift market. Frontline's core strategy will however remain to be a pure crude oil transportation company. In view of this strategy, Frontline's mission in Sealift is to help establish a good high quality and profitable company and then most likely dividend the investment directly out to the Frontline shareholders.
The heavy lift market looks promising with an interesting growth ratio and an aging fleet. We are excited to be a part of a new leading player.
January 17, 2007 The Board of Directors Frontline Ltd. Hamilton, Bermuda
Quelle:
www.namct.com/news/content/view/205/50/Wenn ich das richtig interpretiere, ist die neue Firma "Sealift" faktisch eine Ausweitung der Frontline-Aktivitäten einerseits in Richtung Werftbetrieb und auch ins Frachtgeschäft außerhalb von Öltransporten.
Hat jemand genug Ahnung von der Materie, um die wirtschaftlichen Chancen dieser Vorgehensweise annähernd bewerten zu können?
Ein Kommentar dazu wäre sehr interessant!
Gruss und danke vorab - az
