Sale of three MRs in an en-bloc transaction
with Leonhardt & Blumberg
HAMILTON, Bermuda,
April 4, 2022
/PRNewswire/ -- Ardmore Shipping Corporation (NYSE: ASC) ("Ardmore"
or the "Company") announced today that it has agreed terms for the
sale of three 2008-built MR product tankers to Leonhardt &
Blumberg for an aggregate price of $40
million. Following completion of the sales and the
prepayment of financing associated with the vessels, the
transaction will generate net cash of approximately $15 million to Ardmore, which will be used for
general corporate purposes.
Immediately following the completion of the sales, which are
expected to take place in the second quarter, Ardmore will time
charter each vessel from Leonhardt & Blumberg for a minimum of
two years. Completion of each of the vessel sales is subject to the
satisfaction of certain conditions, including, for one vessel, a
proposed closing date currently in advance of the current purchase
lease option exercise date for that vessel.
Anthony Gurnee, Ardmore's Chief
Executive Officer, commented on the announcement:
"We are very pleased to work with Leonhardt & Blumberg
for a sale and charter-back on three of our MR tankers. The sale is
consistent with Ardmore's capital allocation policy while also
maintaining our commercial scale and earnings upside. Leonhardt
& Blumberg is a world-class private shipping group and an
excellent industry partner for Ardmore Shipping, and we look
forward to working with them on future potential business
opportunities."
Torben Kölln, Leonhardt & Blumberg's Managing Director,
commented on the announcement:
"For quite some time, we were investigating other shipping
segments to identify opportunities to diversify our fleet and by
doing so fully utilize our team's skills and expertise. On this
project, all our requirements are fulfilled: The timing, the market
sentiment, the right assets and the right partner. Ardmore Shipping
enjoys the highest reputation within the tanker industry and has
the same philosophy on topics such as operational efficiency,
customer relations and environmental and social responsibility. We
look very much forward to working together."
About Ardmore Shipping Corporation
Ardmore owns and operates a fleet of MR product and chemical
tankers ranging from 25,000 to 50,000 deadweight tonnes. Ardmore
provides seaborne transportation of petroleum products and
chemicals worldwide to oil majors, national oil companies, oil and
chemical traders, and chemical companies, with its modern,
fuel-efficient fleet of mid-size tankers.
Ardmore's core strategy is to continue to develop a modern,
high-quality fleet of product and chemical tankers, build key
long-term commercial relationships and maintain its cost advantage
in assets, operations and overhead, while creating synergies and
economies of scale as the company grows. Ardmore provides its
services to customers through voyage charters, commercial pools,
and time charters, and enjoys close working relationships with key
commercial and technical management partners.
Ardmore's Energy Transition Plan ("ETP") focusses on three key
areas: transition technologies, transition projects, and
sustainable (non-fossil fuel) cargos. The ETP is an extension of
Ardmore's strategy, building on its core strengths of tanker
chartering, shipping operations, technical and operational fuel
efficiency improvements, technical management, construction
supervision, project management, investment analysis, and ship
finance. Ardmore has established Ardmore Ventures as Ardmore's
holding company for existing and future potential investments
related to the ETP and completed its first projects under the plan
in June 2021.
About Leonhardt & Blumberg
Leonhardt & Blumberg (L & B) is an independent
family-owned provider of tramp tonnage from Hamburg, Germany. Since 1903 L & B has
managed close to 200 vessels, which were mostly general cargo
vessels and bulk carriers in the past.
Today, the company operates modern containerships ranging from
about 1000 TEU to 3,600 TEU capacity with best-in-class working
principles. L & Bs long track record of safety, reliability and
environmental responsibility is the basis for their strong
relationships with many of the leading shipping companies.
Forward Looking Statements
Matters discussed in this press release may constitute
forward-looking statements. The Private Securities Litigation
Reform Act of 1995 provides safe harbor protections for
forward-looking statements in order to encourage companies to
provide prospective information about their business.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than
statements of historical facts. The Company desires to take
advantage of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 and is including this cautionary
statement in connection with this safe harbor legislation. In some
cases, you can identify the forward-looking statements by the use
of words such as "believe", "anticipate", "intends", "estimate",
"forecast", "plan", "potential", "may", "expect", and similar
expressions.
Forward looking statements in this press release include, among
others, the following statements: the expected time for the
completion of the sale of the three tankers; satisfaction of
closing conditions to the sale transactions, including satisfaction
of the closing date timing for a vessel; and potential
collaboration with Leonhardt and Blumberg on future business
opportunities. The forward-looking statements in this press release
are based upon various assumptions. Although the Company believes
that these assumptions were reasonable when made, because these
assumptions are inherently subject to significant uncertainties and
contingencies which are difficult or impossible to predict and are
beyond the Company's control, the Company cannot assure you that it
will achieve or accomplish these expectations, beliefs or
projections. The Company cautions readers of this release not to
place undue reliance on these forward-looking statements, which
speak only as of their dates. The Company undertakes no obligation
to update or revise any forward-looking statements. These
forward-looking statements are not guarantees of the Company's
future performance, and actual results and future developments may
vary materially from those projected in the forward-looking
statements.
In addition to these important factors, other important factors
that, in the Company's view, could cause actual results to differ
materially from those discussed in the forward-looking statements
include: completion of conditions of sale of the three vessels; and
the availability of suitable future collaborative opportunities to
the Company and Leonhardt & Blumberg and the results of related
discussions and negotiations between the parties. Please see the
Company's filings with the U.S. Securities and Exchange Commission,
including the Company's Form 20–F for the year ended December 31, 2021, for a discussion of these
and/or other risks and uncertainties.
Investor Relations Enquiries
Mr. Leon Berman
The IGB Group
45 Broadway, Suite 1150
New York, NY 10006
Tel: 212-477-8438
Fax: 212-477-8636
Email: lberman@igbir.com
Or
Mr. Bryan Degnan
The IGB Group
Tel: 646-673-9701
Email: bdegnan@igbir.com
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SOURCE Ardmore Shipping Corporation