A major Saudi economic event will take place next Thursday corresponding to 19 June 2014, that is the extraordinary general meeting of “Bahri”, which gives the last green light to the biggest merger transaction in the Saudi’s history ever, between the operations and fleet of “Vela” that is fully owned by the Saudi company “Aramco”, and The National Shipping Company of Saudi Arabia (Bahri). The said merger amounts SAR 4.875.000.000 (Four Billion Eight Hundred and Seventy Five Million Saudi Riyal). Bahri will pays SAR 3.122.812.500 (Three Billion One Hundred Twenty Two Million Eight Hundred Twelve Thousand and Five Hundred Riyal) in cash, and issue 78.750.000 Shares (Seventy Eight Million Seven Hundred and Fifty Thousand), with a value of SAR 22.25 each. After the intended merger, “Bahri”, owning 20% of Aramco’s shares, will be the exclusive transporter of the crude oil sold by Aramco free on board by gigantic tankers, under a long-term shipping contract.
Eng. Saleh Al-Jasser, CEO of “Bahri” explained that the oil sector in “Bahri” will seize after merger the world fourth rank in terms of volume of its gigantic tankers fleet. It will consist of 31 tankers after the 14 gigantic tankers owned by Vela joining the Bahri’s fleet of 17 gigantic tankers, in addition to one used for floating storage and 5 refined oil products tankers, along with all Vela’s tankers staffs, a number of office employees and a number of its operations systems. “Once the extraordinary general meeting of “Bahri” votes for the merger, the first batch of Vela’s gigantic tankers will be delivered to “Bahri” within a month after the meeting. Upon that time, the exclusive transportation contract comes into force. Thereafter the delivery of the whole fleet and operations of Vela will be completed.” He added.
Mr. Al-Jasser assured that such transaction will create added value to “Bahri”, “Aramco” and Saudi economy as well. It is also a role model in terms of cooperation between national companies to contribute to economic development in KSA. Moreover, such a transaction will minimize the effects of prices fluctuation on Bahri, and maximize the shareholder’s incomes. And both parties (Aramco and Bahri) will endeavor to explore more beneficial opportunities to expand their cooperation in the field of various marine activities.
Al-Jasser also honored the support bestowed to this transaction by the government of the Custodian of the Tow Hole Mosques, what facilitated a lot of the procedures leading to the transaction that will give rise to national pioneer transporter with a fleet amounting 72 gigantic tankers and vessels in various fields contributing to a flourishing marine transport in KSA under world class standards.
Tuesday, June 17- 2014 @ 10:17 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.