Discussions between Dubai-based Gulf Navigation (GulfNav) and Singapore-based Atlantic Navigation for the sale of equity stake in Atlantic have come to naught.
Gulf Navigation revealed its plans to acquire a majority stake in Atlantic Navigation in late January 2018 in a bid to propel the business forward and create added opportunities that both companies can deliver.
After extensive discussions between Atlantic Navigation, its major shareholder, and Gulf Navigation, the parties have been unable to come into agreement on the definitive terms of the proposed transaction. Accordingly, the parties have agreed to terminate further discussions, Atlantic Navigation said on Monday.
Atlantic provides marine logistic services, ship repair, fabrication, and other marine services primarily to customers in the Middle East and India.
The company operates a fleet of 25 vessels which comprises a variety of AHT, AHTS, jack-up accommodation barges, offshore cargo barges, towing tugs, offshore supply vessels, and lift boats. Of the 25, 17 are wholly owned by Atlantic, two are jointly owned, and six are cross chartered or managed.
In addition, Atlantic in June 2016 entered into shipping contracts with Wuhan Shuangliu Wuchang Shipbuilding Industry to build seven new vessels to support the long-term charter contracts of $236 million awarded by a Middle Eastern National Oil Company.
The first batch of five new vessels have been delivered to the company for loading on to a dry-tow vessel to prepare for mobilization to the Middle East.
In relation to these shipbuilding contracts, Atlantic said on Monday it has entered into a loan agreement with Mubarak Abdullah Al-Suwaiket for the grant of a loan of a principal amount of $8.5 million. The lender is the company’s country representative in the Middle East, and an independent and unrelated third party to the directors and controlling shareholders of the company.
The loan will be exclusively utilized towards the partial settlement of the cash portion and mobilization cost due for the five new vessels, with the outstanding part of the purchase price for the first batch of five new vessels being funded by a $20.4 million term loan from the company’s UAE banker.
Offshore Energy Today Staff