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International Seaways agrees 370 million dollar Bruton acquisition

International Seaways agreed to acquire Bruton at an equity value of about 370 million dollars, adding four large crude oil tankers to its fleet. The transaction starts with a share exchange covering a majority stake, followed by a merger for the remaining holdings. Approvals and a shareholder vote are still part of the timetable, with completion targeted for early November.

Economics & Markets··Midday
A black-and-red tanker with deck pipelines and a white stern superstructure sails across open blue sea, leaving a foamy wake.

A majority stake comes first

Tanker owner International Seaways agreed on October 16 to acquire Bruton, an Oslo-listed owner of large crude carriers, at an equity value of about 370 million dollars. Four tankers are included. The agreement starts with a share exchange for 50.5 per cent of Bruton, followed by a merger to acquire the remaining holdings.[1], [2]

The initial shareholders include Tor Olav Trøim’s Drew Holdings and Koch Inc. Each Bruton share is to be exchanged for 0.0519 International Seaways shares. The company expects to issue approximately 3.12 million shares, accounting for roughly 96 per cent of the consideration. Smaller shareholders are to receive 6.3044 dollars in cash per share.[1]

Four ships span deliveries into 2027

Each tanker has a carrying capacity of 300,000 tonnes. Mount Vision entered service in July; Mount Horizon is scheduled for delivery in November. Mount Frontier and Mount Summit are due in August and October 2027. The first two ships have charter contracts, while the two later deliveries remain unchartered.[1]

Shareholders face an October vote

Bruton’s board unanimously recommended the deal. The initial exchange is expected around October 20 and the shareholder vote around October 30. Completion is targeted for early November, subject to approvals, followed by a planned delisting from Euronext Growth Oslo. Eight newbuildings transferred to the separate company OMC Tankers in an August demerger are excluded. The acquisition continues International Seaways’ programme of selling older ships and investing selectively in newer vessels.[1]

References

  1. News sourceSplash247International Seaways agrees to acquire Bruton↩1↩2↩3↩4
  2. News sourcegCaptainInternational Seaways adds four large crude carriers in Bruton deal↩
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