Indonesia's Belian Laju agrees to buy Camillo Eitzen for NKr1bn

05 October 2009 09:50  [Source: ICIS news]

LONDON (ICIS news)--Indonesia shipping giant PT Berlian Laju Tanker (BLT) has agreed to buy Norwegian firm Camillo Eitzen & Co (CECO) for Norwegian kroner (NKr) 1bn ($173m/€119m) in a deal that would give it the largest chemical tanker fleet in the world, the two companies announced on Monday.

BLT offered NKr25 for each Camillo Eitzen share, which would be paid in convertible bonds, the two companies added in a statement. 

Following the announcement, Camillo Eitzen’s shares were trading at NKr17.00 on the Oslo Exchange at 09:30 local time, up from NKr6.75 at the close of market on Friday.

Camillo Eitzen’s board and its main shareholders, which hold 76% of the shares, supported the offer and an exclusive agreement had been entered into, according to the statement.

“The transaction with CECO, which has extensive shipping networks and a global customer base, is part of BLT’s strategy to expand its footprint in all regions worldwide," said Siana Anggraeni Surya, BLT’s director of business development.

“It will enhance our global trading routes, bolster our strategic presence in the chemical and gas tanker segments, and diversify the business to dry bulk and maritime services,” she added.

Camillo Eitzen chairman Axel Eitzen said: “I believe the indicative offer presents our shareholders and employees worldwide with strong possibilities to explore renewed opportunities and to develop each core segment substantially.”

The deal, which BLT hopes to finalise next month, will see the new company owning 157 chemical tankers, 14 oil tankers, 42 gas tankers, 50-60 bulk carries and a floating production storage and offloading vessel.

The statement said the company would go ahead with the Eitzen Chemical equity offering announced on 1 October.

BLT's share price had not moved since the statement on the agreed purchase was released on Monday.

($1 = NKr5.78, $1 = €0.69)

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By: Lucy Craymer
+44 20 8652 3214

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