Tufton Oceanic Assets Ltd. Acquisition of Product Tanker (3739O)
June 10 2022 - 2:00AM
UK Regulatory
TIDMSHIP
RNS Number : 3739O
Tufton Oceanic Assets Ltd.
10 June 2022
10 June 2022
Tufton Oceanic Assets Limited (The "Company")
Acquisition of Product Tanker
The Board of Tufton Oceanic Assets Limited (ticker: SHIP.L) is
pleased to announce the Company has agreed to acquire a Product
Tanker for $31.5m.
The Product Tanker, Marvelous, is being acquired at
approximately 90% of depreciated replacement cost. Initially the
vessel will be employed in a leading product tanker pool where
current net unlevered yield is in excess of 25%. We anticipate that
the yield will remain above 20% over the next 1-2 years during
which time we will decide if a longer term fixed rate charter is
more appropriate. Completion of the acquisition is expected by
early July.
Similarly to the Product Tanker Exceptional, which the Company
acquired at the end of 2021, Marvelous is in the top quartile of
fuel efficiency in its market segment but will nonetheless be
evaluated for further improvement, including the retrofit of energy
saving devices. Marvelous is being acquired at only a slightly
higher valuation multiple than Exceptional.
The investment follows earlier announcements regarding capital
re-allocation, ESG priorities and the recent strong improvement in
the product and chemical tanker markets. Following this acquisition
and previously announced divestments and acquisitions, the Company
will be fully invested.
For further information, please contact:
Tufton Investment Management Ltd (Investment
Manager)
Andrew Hampson
Paulo Almeida +44 (0) 20 7518 6700
Singer Capital Markets
James Maxwell, Alex Bond (Corporate Finance)
Alan Geeves, James Waterlow, Sam Greatrex
(Sales) +44 (0) 20 7496 3000
Hudnall Capital LLP
Andrew Cade +44 (0) 20 7520 9085
About the Company
Tufton Oceanic Assets Limited invests in a diversified portfolio
of secondhand commercial sea-going vessels with the objective of
delivering strong cash flow and capital gains to investors. The
Company's investment manager is Tufton Investment Management Ltd.
The Company has raised a total of approximately $316.5m (gross)
through its Initial Public Offering on the Specialist Fund Segment
of the London Stock Exchange on 20 December 2017 and subsequent
capital raises.
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END
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