Monaco-based tanker owner Scorpio Tankers has completed the acquisition of four LR1 tankers from Navig8 Product Tankers.
Scorpio Tankers purchased the quartet for USD 42.2 million in cash consideration and assumed debt of USD 113.8 million. The move is part of definitive agreements to merge, signed between the shipowners in late May.
The cash is expected to be used by Navig8 Product Tankers for general corporate purposes, including working capital, and any remaining cash at the closing of the merger will form part of the balance sheet of the combined company.
Under the merger agreements, Scorpio was to acquire the four LR1 tankers prior to the closing of the merger, while the remaining 23 ships are set to be acquired upon the closing of the merger in exchange for the issuance of 55 million shares of Scorpio common stock to the Navig8 shareholders.
The fleet of 27 eco-design product tankers is comprised of 15 LR2s and 12 LR1s with a weighted average age of 0.9 years and a total carrying capacity of around 2.6 million dwt.
The closing of the merger is subject to the completion of certain customary conditions, including without limitation, the approval of the merger by holders of a majority of the outstanding shares of common stock of NPTI.
Scorpio Tankers informed that the merger is expected to close in the third quarter of 2017.