Bahri Obtains EGM Approval and Signed Bridge Financing Agreement to Finance the Deal
The National Shipping Company of Saudi Arabia (Bahri) obtained the approval of Extra Ordinary General Assembly (EGM) on Thursday 19th June 2014 to merge the fleet and operations of Vela International Marine Limited (a wholly owned subsidiary of Saudi Aramco) with Bahri which is considered as the largest merger in the history of the Saudi market. The EGM was attended by 59.78% of the shareholders out of which 99.99% voted to support this agreement. The company also signed an agreement on 22nd June 2014 to obtain Murabaha financing with three banks “JP Morgan”, “SAMBA” and “SABB” for SAR 3,182,812,500.
Bahri CEO, Engr. Saleh Al-Jasser Said: the results of the attendance and voting reflect shareholders support and confidence in the company’s policy to develop its business areas in order to enhance its growth and its expansion. Adding further he mentioned that, the Assembly’s approval is the last regulatory approvals to finalize the fleet and operations merger between “Veal” and “Bahri” where in they will complete the process of merging the Vela tankers with Bahri during a period not exceeding one month from the date, bringing the long term exclusive carrier contract into effect and then will complete the receipt of the entire fleet and operations of Vela to become the exclusive shipping carrier for the crude oil shipping services sold by Saudi Aramco to its customers on delivered basis. He also pointed out that, this transaction represents an added value to Bahri and to Saudi Aramco and the economy of the Saudi Arabia.
Engr. Al-Jasser added that, Bahri signed an agreement to finance the cash and cost associated with the merger for SAR 3,182,812,500 and illustrated his expectation to pay the Murabaha financing within 12 months from the date of signing of financing agreements through issuance of Sukuk OR obtain long term Shariah compliant facilities. On this occasion, Al-Jasser thanked and appreciated the financed banks for their cooperation and confidence in the company’s financial status.
Engr. Al-Jasser also mentioned that after the merger Bahri will become the third-largest owner of VLCCs in the world with a fleet of 32 tankers.
According to Engr. Al-Jasser this deal is an example of cooperation between national companies to achieve economic growth of Saudi Arabia, creating value for all parties, and the parties involved (Saudi Aramco and Bahri) will explore ways to expand their cooperation in the maritime sector.
For more information about Bahri, kindly visit www.bahri.sa