Odfjell SE signs Term Sheet with Chemical Transportation Group

Odfjell SE signs Term Sheet with Chemical Transportation Group to acquire 5 stainless steel newbuildings and to form a pool for 15 x 25,000 dwt chemical tankers

Odfjell SE ("Odfjell") has signed a Term Sheet with Chemical Transportation Group, Inc ("CTG") whereby Odfjell will acquire the last 5 of a total newbuilding order of 10 x 25,000 dwt vessels with 24 stainless steel tanks from Chinese ship builder AVIC Dingheng.

CTG will continue to own 5 vessels which will be placed in a pool commercially managed by Odfjell Tankers AS. The vessels will - together with Odfjell's current fleet of 5 x 25,000 dwt vessels and the 5 vessels acquired by Odfjell – form a pool for 15 x 25,000 dwt chemical tankers.

The vessels acquired by Odfjell will be bought at USD 40 million per vessel upon delivery from yard, and are scheduled for delivery from June 2017 through May 2018.

The vessels that will remain under CTG ownership will enter the pool as soon as existing pool agreements and charters expire in the coming 6-12 months.

"This transaction will be in line with our strategy 'the Odfjell Compass' and will complete most of our current tonnage ambitions. It will, together with other recent tonnage initiatives, ensure that Odfjell can continue to offer competitive and efficient service to our customers. At the same time, we are excited about the strategic relationship between CTG and Odfjell, and are pleased to take part in the consolidation of the chemical tanker industry" 

Kristian Mørch, CEO, Odfjell SE

The transaction is subject to final negotiations and execution of definitive documentation and customary closing conditions.

Published June 16, 2017

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