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Sat 19 Mar 2016 01:00 AM

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UAE's Tristar buys Abu Dhabi shipping firm for $90m

Logistics group takes 100% ownership of Abu Dhabi-based Emirates Ship Investment Company

UAE's Tristar buys Abu Dhabi shipping firm for $90m
(Photo for illustrative purposes only)

Logistics group Tristar has agreed to take 100 percent ownership of Abu Dhabi-based Emirates Ship Investment Company, also known as ESHIPS, from Egon Oldendorff GmbH & Co for $90 million.

Under the terms of the deal, UAE-based Tristar will acquire a fleet of seven chemical tankers which includes two LPG tankers under long term time charter to an oil major.

These vessels will be phased into the company's existing fleet and then fixed out long term in line with company policy, the company said in a statement.

"This acquisition is a perfect fit to our longer term plans to diversify revenue and make ship owning an integral part of our strategy to build a fully integrated liquid logistics business," said Eugene Mayne, group CEO of Tristar.

"Oldendorff has made a strategic decision to focus on the dry cargo shipping business and is very pleased to have found a good new home for ESHIPS and its employees with Tristar. Tristar has a long term perspective and will now take ESHIPS forward and develop it as a tanker company," added Peter Bagh, COO of German dry bulk owners Oldendorff Carriers.

In a related move, Tristar is due to start taking delivery in May of its six new 50,000 MT clean petroleum product tankers from Korean builder Hyundai Mipo Dockyard and built at cost of $200 million.

This acquisition of ESHIPS and the newbuilding program, together with its existing coastal fleet, will bring the Tristar-owned shipping fleet strength to more than 20 vessels.

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