Berlian Laju Tanker (BLT), Jakarta, plans to submit a voluntary exchange offer for all outstanding shares in Camillo Eitzen & Co (CECO), Oslo, to create an enormous chemical, gas, oil, bulk carriage and service company.
The proposed transaction would see the group comprise the world's largest and most modern chemical tanker fleet.
The offer is based on payment of NOK 25 per Camillo Eitzen share, payable in securities which will be converted into BLT shares, representing a premium of 270 % on the Eitzen share price as of market close on October 2, 2009.
The Board of CECO and main shareholders, representing 76 percent of the shares, support the received indicative non‐binding offer and the proposed transaction is supported by the syndicate agent bank Nordea.
The company will seek listing at the Oslo Stock Exchange
The combined company will be well positioned to benefit from a shipping market recovery as industrial production and international trade improves. The combined company will provide new and existing customers with transportation solutions including access to the Indonesian domestic market and a large Asian presence.
Total revenues of the combined companies for the past 12 months amount to approximately US$2.3 billion with an EBITDA of US$499 million.
Including newbuilds the group will own and/or operate 157 chemical tankers, 14 oil tankers, 42 gas tankers, 50‐60 bulk carriers and one FPSO, in addition to services offered through Eitzen Maritime Services.
CECO chairman Axel C. Eitzen will remain actively involved in the further development of the combined group, and will be its second largest shareholder.
"We are truly excited about the industrial prospects the combination of CECO and BLT can deliver," Ms Siana Anggraeni Surya, Director of Business Development in BLT, said.
"I believe this combination would have significant commercial potential and can deliver valuable synergies in all segments. The group will be truly international in all respects, with the advantage of exploring the significantly increasing cabotage locally in Indonesia, coupled with the organic growth in the South East Asian markets," Axel C. Eitzen, Chairman of CECO, said.
