Norwegian shipping tycoon John Fredriksen's US-listed bulk carrier SFL Corporation sold seven bulk carriers to an Asian buyer for US$100 million. It is reported that the buyer is China Development Bank Leasing.
On September 14, CDB Leasing announced that CDB Leasing (International) Company Limited, a wholly-owned subsidiary of the company (as the buyer), and the seller entered into a ship purchase agreement on September 8, 2021, and the buyer intends to purchased seven bulk carriers for a consideration of US$100 million.
The announcement stated that the sellers were seven companies incorporated in Liberia, mainly engaged in international bulk cargo transportation business. The ultimate beneficial owner is SFL Corporation Ltd.
According to the announcement, the ship purchase agreement is conducive to giving full play to the advantages of all parties, and to increase the company's market share in the ship market, and is in line with the company's business development strategy. As of June 30, CDB Leasing operated a total of 146 ships, including 115 bulk carriers.
SFL stated that these seven ships have been in use on the spot market for the past five years. Considering the limited long-term chartering opportunities for small bulk carriers, the company finally decided to sell these ships. After repayment of related debts, the net cash income of this transaction is estimated to exceed 50 million U.S. dollars, and SFL's final income will exceed 40 million U.S. dollars.
Source: Sarah Yu, XINDE MARINE NEWS
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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