June 25, 2009
Dubai's Gulf Navigation poised for major acquisition
Dubai's Gulf Navigation Holding PJSC (DFM: GULFNAV), the leading non-governmental shipowner in itsregion, says it has entered the final phase in negotiating the acquisition of a large and modern tanker fleet.
"The company, rich in cash, has for some time sought opportunities to expand its chemical, product and crude carrier fleets, but has considered prices of newbuilding and second hand ships unrealistically high and hence uneconomical," said a statement issued today. "Now the company feels the price of this acquisition represent a good and fair value of the vessels and the reliable charter contracts connected herewith. The company is also in negotiations with leading banks about a competitive package to finance the transaction."
Gulf Navigation did not disclose the acquisition target.
Chairman of the Board of Gulf Navigation, Engr. Abdullah Al Shuraim said “We rather consider these negotiations timely opportunities to fulfill our commitment to our shareholders and to our growth strategy in the ever-growing tanker markets. Additions to our existing fleet will instantly secure additional long-term revenues and profits for the company and its shareholders.”
Gulf Navigation said that,in line with its transparency policy, it will announce all milestones in the negotiations as they are reached.
Gulf Navigation Holding PJSC and its group companies own and operate crude, clean petroleum product and chemical tankers. ISO 9001:2000 certified, it has 11 specialized subsidiaries and owns 19 tankers and charters VLCC, Suezmax, Chemical, Product Tankers and crew boats. It is also the sole agency for a large number of global marine manufacturers and the only maritime and shipping company listed on the Dubai Financial Market.