RIYADH, 27 February 2005 — The National Shipping Company of Saudi Arabia (NSCSA) will acquire 30.3 percent shareholding in the Bermuda-based LPG trader and shipowner Petredec Limited by infusing $50 million as capital, according to NSCSA Chairman Abdullah S. Nojaidi.
The transaction will close approximately in a month’s time.
“The gas trades out of the Gulf will grow significantly in the coming years. We consider our investment in Petredec to be the best route by which we can become a market leader in the shipping and trading of LPG in this region. This transaction represents a number of firsts for NSCSA, including our first share acquisition of an existing shipping company, our first venture into the gas trades and our first major investment outside the GCC region,” he said.
He added that the investment fulfils and fits perfectly with NSCSA’s long-term strategy of stengthening international alliances and diversifying the company’s portfolio, thus fulfilling its growth ambitions.
“We are extremely pleased to be investing in and working with a company of Petredec’s caliber,” Nojaidi said.
In a statement, Don Dunstan, Petredec chairman, said:” We are extremely pleased to welcome NSCSA on board as a shareholder. We are aggressively growing our shipping and trading activities and we expect to see a major part of this expansion take place in the Arabian Gulf. We are considering further development of our cooperation with NSCSA and we fully expect that our relationship will grow over time to our mutual benefit.”
DVB Corporate Finance, part of DVB Bank AG and specialists in international transport, acted as exclusive financial adviser to Petredec. Stevenson and Co., Glasgow provided legal services. NSCSA was advised by international lawyers Holman Fenwick & Willan and accountants Moore Stephens.