TORM Buys Eight Secondhand MR Tankers

Danish pure play product tanker company TORM on Monday announced it has entered into an agreement to acquire eight secondhand MR vessels in a $340 million cash and stock deal. TORM did not name the seller.

The vessels have all been built by South Korea's Hyundai Mipo Dockyard in 2014 and 2015, and six of the vessels have been fitted with scrubbers. TORM said it expects to take delivery of the vessels during the third and fourth quarters of this year.

The purchase price, which includes a cash consideration of $238 million and the issuance of approximately 2.65 million shares, is subject to certain adjustments that will be impacted by TORM’s share price development and the vessels’ delivery schedules, TORM said. The cash element of this transaction will be financed through traditional bank financing, the company added.

Jacob Meldgaard, TORM executive director and CEO, said, “We are pleased to once more announce a partially share-based transaction to acquire vessels. Since 2021, TORM has utilized partially share-based transactions to expand the fleet, even before the product tankers market took off. This model highlights the strong trust the sellers have in our One TORM platform and their firm belief in market fundamentals.”

In addition, TORM revealed that it has, since the release of its first quarter results, sold one 2006-built MR tanker for $23.3 million in cash. The ship will be delivered to its new owner in the third quarter, TORM said, without naming the buyer.