Navigator Holdings Ltd. (“Navigator”) (NYSE: NVGS), the owner and
operator of the world’s largest fleet of handysize liquefied gas
carriers, is pleased to announce that, with effect from September
30, 2022, it has entered into a joint venture agreement with
Greater Bay Gas Co. Ltd. (Liberia) (“Greater Bay Gas”).
The joint venture (the “Joint Venture”), owned
60% by Navigator and 40% by Greater Bay Gas, intends to acquire,
over the next fifteen months, a total of five ethylene vessels,
made up of two 17,000 cbm, 2018-built and three 22,000 cbm,
2019-built ethylene vessels (the “Vessels”). The Vessels are
currently commercially managed by the Luna Pool collaborative
arrangement (the “Luna Pool”), which was formed in March 2020 by
Navigator, Greater Bay Gas Co. Ltd. (HK) and Pacific Gas Pte. Ltd.
(Singapore).
Subject to customary conditions, the Joint
Venture intends to acquire each of the Vessels following the
exercise of the respective purchase options from their existing
owner by Equator Fund Limited, the parent company of Greater Bay
Gas, as each of such options becomes exercisable. The aggregate
purchase price the Joint Venture expects to pay to acquire the
Vessels is approximately $233 million. The Joint Venture intends to
finance the majority of the purchase price through commercial bank
finance, with the remainder sourced from capital contributions from
Navigator and Greater Bay Gas. Navigator expects to finance its
share of the capital contributions from available cash
resources.
Once acquired by the Joint Venture, each of the
Vessels will continue to be commercially managed by the Luna Pool,
benefiting from the experienced team formed in 2020. The technical
manager of the Vessels will remain Pacific Gas Pte. Ltd.
(Singapore).
Mads Peter Zacho, Chief Executive
Officer of Navigator, said:
“Following the success of our Luna Pool
collaboration with Greater Bay Gas Co. Ltd. (HK), the formation of
this 60/40 Joint Venture is the natural next step in our strategic
alliance, enabling us to benefit further from our combined
strengths. The Joint Venture with Greater Bay Gas will result in a
reduction in the average age of Navigator’s fleet and will allow us
to take advantage of more efficient vessels, lowering emissions and
offering improved economics to our customers. The Joint Venture is
accretive as it further consolidates the handysize segment and puts
us in a strong position for further growth and development in an
evolving marketplace.”
Mr. Steven Xiao, Director of Greater Bay
Gas, commented:
“The Luna Pool collaboration has proven a great
success and has paved the way to today’s Joint Venture. If the Luna
Pool experience symbolized falling in love a few years ago, then we
witness a happy marriage today. Naturally, following the Joint
Venture we anticipate a successful journey together and with such
holistic synergy, the Luna Pool is expected to be more productive
to contribute to the global gaseous business community.”
About Greater Bay GasGreater
Bay Gas Co. Ltd. (HK) is a gaseous product logistic service
provider based in the heart of the Shenzhen Greater Bay Area,
China. It currently operates the fleet of five modern
semi-pressurized and semi-refrigerated ethylene and ethane gas
carriers that are expected to be acquired by the Joint Venture. It
aims to develop its core business through global strategic
partnerships to serve increasing demand for shipping and related
logistics of gaseous product worldwide.
Greater Bay Gas Co. Ltd. (HK) was founded
primarily by Equator Fund Limited, which is a maritime-focused
fund, having its headquarters in the Municipality of Shenzhen, with
offices in Hong Kong and Shanghai, China.
About Navigator GasNavigator
Holdings Ltd. is the owner and operator of the world’s largest
fleet of handysize liquefied gas carriers and a global leader in
the seaborne transportation services of petrochemical gases, such
as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia
and owns a 50% share, through a joint venture, in an ethylene
export marine terminal at Morgan’s Point, Texas on the Houston Ship
Channel, USA. Navigator’s fleet consists of 53 semi- or
fully-refrigerated liquefied gas carriers, 21 of which are ethylene
and ethane capable. The Company plays a vital role in the liquefied
gas supply chain for energy companies, industrial consumers and
commodity traders, with its sophisticated vessels providing an
efficient and reliable ‘floating pipeline’ between the parties,
connecting the world today, creating a sustainable tomorrow.
Navigator’s common stock trades on the New York
Stock Exchange under the symbol “NVGS”.
Navigator Gas |
|
Attention: |
Investor Relations
investorrelations@navigatorgas.com and
randy.giveans@navigatorgas.com |
Address: |
1201 Fannin St. Suite 262, Houston, Texas, U.S.A. 77002 |
Tel: |
+1 713 373 6197 and +44 (0)20 7340 4850 |
|
|
Investor Relations / Media Advisors |
Nicolas Bornozis /
Paul Lampoutis |
Capital Link - New
York |
Tel:
+1-212-661-7566 |
Email:
navigatorgas@capitallink.com |
Forward Looking StatementsThis
press release contains certain “forward-looking” statements (as
defined by the Securities and Exchange Commission) concerning plans
and objectives of management for future operations or economic
performance, or assumptions related thereto, including statements
concerning the formation of the Joint Venture, the acquisition of
vessels by the Joint Venture, the performance of the Joint Venture
and the benefits of the transaction to Navigator and its
shareholders. In addition, we and our representatives may from time
to time make other oral or written statements that are also
forward-looking statements. In some cases, you can identify the
forward-looking statements by the use of words such as “may,”
“could,” “should,” “would,” “expect,” “plan,” “anticipate,”
“intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,”
“potential,” “continue,” “scheduled,” or the negative of these
terms or other comparable terminology. These forward-looking
statements involve many risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements. These risks and uncertainties include but are
not limited to those set forth in the periodic reports Navigator
files with the Securities and Exchange Commission.
All forward-looking statements included in this
press release are made only as of the date of this press release.
New factors emerge from time to time, and it is not possible for us
to predict all of these factors. Further, we cannot assess the
impact of each such factor on our business or the extent to which
any factor, or combination of factors, may cause actual results to
be materially different from those contained in any forward-looking
statement. We expressly disclaim any obligation to update or revise
any forward-looking statements, whether because of future events,
new information, a change in our views or expectations, or
otherwise. We make no prediction or statement about the performance
of our common stock.
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