Torm Buys Eight LR2 Tankers

 Danish shipping company Torm announced it has entered into an agreement to acquire eight secondhand LR2 vessels from an undisclosed seller.

The $399 million deal includes a cash consideration of $239 million and the issuance of approximately 5.5 million shares, Torm said, noting the purchase price is subject to certain adjustments that will be impacted by its share price development and the vessels’ delivery schedules.

The vessels are expected to be delivered in late Q4 2023 and in Q1 2024.

The ships were all built at South Korea's yard Hyundai Samho Heavy Industries from 2010 through 2012 and have fuel-efficient eco vessel specifications, Torm said.

Jacob Meldgaard, Torm CEO, said, “We are pleased with this opportunity to increase our exposure to the LR2 segment, as we see strong demand-drivers in this segment in the coming years. As always, we focus on the expected return on capital invested and we believe that it is value accretive and particularly interesting for our shareholders to use issuance of new shares as part of the consideration.”