Reliance Industries’ Singapore-based subsidiary Reliance Ethane Holding Pte. is in pact to sell stake in its fleet of six very large ethane carriers (VLECs) to Japanese shipping group Mitsui OSK Lines, the Mukesh Ambani-led company said in a statement on Thursday.
Mitsui OSK, which has a fleet of over 850 vessels, along with a minority investor signed an agreement to buy stakes in the six special purpose companies that each own VLEC each for an undisclosed amount. Post closing SPVs shall be jointly controlled by REHPL and MOL.
“Given MOL is currently the operator of all the six VLECs, investment by MOL will deepen our relationship with them and ensure continued safe and efficient operations of the VLECs. We welcome MOL as a strategic partner into the SPVs as they move beyond the current operator role to joint owner and operator role in the SPVs,” P.M.S. Prasad, executive director, RIL, was quoted as saying in the statement.
The transaction, which will expand Mitsui OSK’s fleet of 850 vessels now, is subject to regulatory approvals.
MOL said that it has been operating these vessels and has detailed knowledge of these VLECs given it has supervised its construction and delivery.
Takeshi Hashimoto, member of the board, executive vice president, MOL said, “This investment would enable MOL to add six unique VLECs, which we have been operating for some time now…We are therefore happy and look forward to use this strategic opportunity to be a joint owner and to significantly strengthen our existing relationship with Reliance.”
Source: Economic Times