Carmelo Caruana Company Limited completed the acquisition of Oil and Gas Ship-to-Ship transfer support services business from Teekay Tankers Ltd. for $27.1 million.
April 29, 2020
Share
Carmelo Caruana Company Limited agreed to acquire Oil and Gas Ship-to-Ship transfer support services business from Teekay Tankers Ltd. (NYSE:TNK) for approximately $26 million on January 28, 2020. Teekay Tankers Ltd will retain its entire Full-Service Lightering business that operates in the U.S. Gulf, which provides ship-to-ship oil transfers for both U.S. crude imports and exports and will continue to operate oil ship-to-ship transfer support services in North America and the Caribbean. The sale is expected to close late in the first quarter of 2020 or early in the second quarter of 2020. Mark Tooke and Richard Stephens of Watson, Farley & Williams (New York) LLP acted as legal advisor to Teekay Tankers Ltd. Squire Patton Boggs acted as legal advisor for Hili Ventures Limited, parent of Carmelo.
Carmelo Caruana Company Limited completed the acquisition of Oil and Gas Ship-to-Ship transfer support services business from Teekay Tankers Ltd. (NYSE:TNK) for $27.1 million on April 30, 2020. The proceeds of $27.1 million include an adjustment of $1.1 million for the final amounts of cash and other working capital present on the closing date. As per filing dated June 2, 2020, the consideration for the transaction amounts to $26 million with an adjustment for the final amounts of cash and other working capital present on the closing date. The consideration will be paid as follows: i) $14.3 million 50% of the consideration plus cash and other working capital adjustments which was paid in May, 2020 ; ii) the remaining amount due was paid on August 31, 2020. As per filing dated September 1, 2020 the transaction was settled for the payment of $27.1 million.
Teekay Tankers Ltd. is a provider of marine transportation to global oil industries. The Company is engaged in the business of owning and operating crude oil and product tankers. It provides vessel operation services for various vessels under the contracts with the Australian Government. Under these contracts the Company delivers all constituent support capabilities: vessel operations, engineering support, maintenance support, supply support, crewing and training and provide support services. The Company owns a fleet of approximately 45 double-hull tankers, including 25 Suezmax tankers, 10 Aframax tankers and nine LR2 product tankers. The Company also owns a very large crude carrier (VLCC) through a 50% owned joint venture. Its tanker segment consists of the operation of its tankers, including the operations from those tankers employed on full-service lightering contracts and the United State based ship-to-ship support service operations, including its lightering support services.
Carmelo Caruana Company Limited completed the acquisition of Oil and Gas Ship-to-Ship transfer support services business from Teekay Tankers Ltd. for $27.1 million.