2013-08-22 08:16:02 -
LONDON, August 22, 2013 - Stolt-Nielsen Limited (Oslo Børs: SNI) announced today
that a heads of agreement (HOA) has been entered into with Frontline 2012 Ltd.
whereby Frontline 2012 will become a shareholder in Avance Gas Holding Ltd
(AGHL) along with Stolt-Nielsen Gas Ltd. and Sungas Holdings Ltd. Following the
expected transaction, the three owners will exercise equal control over AGHL.
The transaction follows the previously announced withdrawal of Transpetrol Gas
Holdings Ltd. from AGHL.
As part of the HOA, Frontline 2012 and AGHL will enter into discussions
regarding the purchase by AGHL of eight 83,000 cbm VLGC newbuildings from
2012. The ships have been ordered by Frontline 2012 from the Jiangnan
Changxing Shipyard in China, with deliveries expected to take place between mid
2014 and end 2015.
Commenting on the transaction, Niels G. Stolt-Nielsen, Chief Executive Officer
Stolt-Nielsen Limited, said, "The acquisition of shares in AGHL by Frontline
2012 is a further step in AGHL's consolidation strategy of the VLGC market.
With three strong owners, it is the company's plan to continue to focus on
second-hand tonnage, mergers and acquisitions. With rising US exports of LPG
from shale gas resources and with continued growth in LPG exports from the
Middle East and West Africa, the dynamics of this transportation market are
improving in line with our expectations. It is the owners' plan to do an OTC
listing in Oslo followed by an IPO."
The Chairman of Frontline 2012, John Fredriksen, said in a comment, "We are
pleased to be able to enter into a deal with Stolt-Nielsen and Sungas. We will
get immediate market exposure to what today is a healthy freight market. With
its existing six modern VLGCs, a solid operation, and strong owners, Avance Gas
is well positioned to grow and act as a major consolidator in the large LPG
It is Frontline 2012's intention to dividend out approximately 20% of the shares
it receives in AGHL directly to its shareholders in order to secure an immediate
OTC listing of AGHL.
Jan Chr. Engelhardtsen
Chief Financial Officer
UK +44 (0) 20 7611 8972
Jens F. Grüner-Hegge
VP Corporate Finance
UK +44 (0) 20 7611 8985
About Stolt-Nielsen Limited
Stolt-Nielsen Limited (SNL or the "Company") is a leading global provider of
integrated transportation solutions for bulk liquid chemicals, edible oils,
acids, and other specialty liquids through its three largest business divisions,
Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm
produces and markets high quality turbot, sole, sturgeon, and caviar. Stolt-
Nielsen Gas, through its investment in Avance Gas Holding Ltd., transports
liquefied petroleum gas (LPG) with a fleet of very large gas carriers (VLGCs).
Stolt-Nielsen Limited is listed on the Oslo Stock Exchange.
This press release contains "forward-looking statements" based on information
available to the Company on the date hereof, and the Company assumes no
obligation to update any such forward-looking statement. These statements may
be identified by the use of words like "anticipate," "believe,"
"expect," "intend," "may," "plan,"
"project," "will," "should," "seek," and
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Company does not represent or warrant that the Company's actual future results,
performance or achievements will be as discussed in the those statements, and
assumes no obligation to, and does not intend to, update any of those forward-
looking statements other than as may be required by applicable law.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
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Source: Stolt-Nielsen Limited via Thomson Reuters ONE