Stolt-Nielsen Limited: Frontline 2012 Ltd. to Join Avance Gas
August 22, 2013 - London
Stolt-Nielsen Limited (Oslo Børs: SNI)announced todaythat a heads of agreement (HOA) has been entered into with Frontline 2012Ltd.whereby Frontline 2012 will become a shareholder in Avance GasHolding Ltd(AGHL) along with Stolt-Nielsen Gas Ltd. and Sungas Holdings Ltd.Following theexpected transaction, the three owners will exercise equal control overAGHL. The transaction follows the previously announced withdrawal ofTranspetrol GasHoldings Ltd. from AGHL.
As part of the HOA, Frontline 2012 and AGHL will enter intodiscussionsregarding the purchase by AGHL of eight 83,000 cbm VLGC newbuildingsfromFrontline 2012. The ships have been ordered by Frontline 2012 from theJiangnanChangxing Shipyard in China, with deliveries expected to take placebetween mid2014 and end 2015.
Commenting on the transaction, Niels G. Stolt-Nielsen, Chief ExecutiveOfficerofStolt-Nielsen Limited, said, "The acquisition of shares in AGHL byFrontline2012 is a further step in AGHL's consolidation strategy of the VLGCmarket.With three strong owners, it is the company's plan to continue tofocus onsecond-hand tonnage, mergers and acquisitions. With rising US exportsof LPGfrom shale gas resources and with continued growth in LPG exportsfrom theMiddle East and West Africa, the dynamics of this transportationmarket areimproving in line with our expectations. It is the owners' plan to doan OTClisting in Oslo followed by an IPO."
The Chairman of Frontline 2012, John Fredriksen, said in a comment,"We arepleased to be able to enter into a deal with Stolt-Nielsen and Sungas. Wewillget immediate market exposure to what today is a healthy freight market.Withits existing six modern VLGCs, a solid operation, and strong owners,Avance Gasis well positioned to grow and act as a major consolidator in thelarge LPGmarket."
It is Frontline 2012's intention to dividend out approximately 20% of thesharesit receives in AGHL directly to its shareholders in order to secure animmediateOTC listing of AGHL.
About Stolt-Nielsen Limited
Stolt-Nielsen Limited (SNL or the "Company") is a leading globalprovider ofintegrated transportation solutions for bulk liquid chemicals, edibleoils,acids, and other specialty liquids through its three largest businessdivisions,Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt SeaFarmproduces and markets high quality turbot, sole, sturgeon, and caviar.Stolt-Nielsen Gas, through its investment in Avance Gas Holding Ltd.,transportsliquefied petroleum gas (LPG) with a fleet of very large gas carriers(VLGCs).Stolt-Nielsen Limited is listed on the Oslo Stock Exchange.
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Source: Stolt-Nielsen Limited via Thomson Reuters ONE