Navigator Holdings Ltd., the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, announced that yesterday, April 14, it signed a non-binding letter of intent with Bernhard Schulte (Singapore) Holdings Pte. Ltd. and Sloman Neptun Schiffahrts-Aktiengesellschaft for the sale by the Company to the Buyers of eight gas carriers as well as the Company’s shareholding in the Unigas International B.V. joint venture, which currently commercially manages the Vessels, for an aggregate purchase price of approximately $183 million.
On completion of the Proposed Transaction, Navigator Gas will fully exit the Unigas Pool, which will continue to operate with the remaining existing partners, Sloman Neptun and Bernhard Schulte. The proceeds from the Proposed Transaction are expected to be used for general corporate purposes.
The Proposed Transaction is consistent with the Company’s ongoing focus on fleet optimization and disciplined capital allocation. The Vessels, with an average age of 13 years, represent non-core tonnage, and the Proposed Transaction will allow the Company to focus on its long-term fleet strategy which is centered on growing and consolidating handysize and midsize ethylene-capable vessels.
The Company expects the Proposed Transaction to be value accretive, with each of the Vessels anticipated to be sold at approximately net asset value (NAV), reflecting a disciplined approach to capital stewardship, whilst also further optimising the balance sheet, enhancing shareholder value, and supporting ongoing fleet renewal, including investment in newer and more efficient vessels in line with our strategy.
Mads Peter Zacho, Chief Executive Officer, commented:
“As our business continues to develop, it is important that our fleet composition and capital allocation remain tightly aligned with our long-term strategic direction. This step reflects a clear focus on simplifying our portfolio and concentrating on assets that best support our core activities, while maintaining the flexibility to continue refreshing the fleet and positioning Navigator Gas for sustainable long-term performance. We are grateful to our Unigas partners for the constructive and long-standing relationship we have shared over many years.”