Leif Hoegh Aims for Foreign Equity with Ship Transfer

A scheme primarily aimed at raising foreign equity capital has been devised by Leif Hoegh. The Norwegian bulk and liner shipping group has transferred five Panamax sized OBO carriers to Hoegh International Shipping (HIS), which was formed as a Bermuda registered subsidiary in August last year. The ships, which are currently owned by the holding company Leif Hoegh and Co A/S (LHC), will continue to operate under the Bahamas Registry, so there will be no immediate savings in operating costs.

The recently proposed Norwegian tax changes did not directly influence the decision, although tax considerations are connected with the move. Hoegh financial director Eric Norman told Marine Money, “We have been considering this move for about five years. The main purpose is to operate the ships in a tax regime, which will help to attract foreign capital. Norwegian tax laws do not offer any incentive for foreign investors. We have taken the first step in a long term plan by moving the ships out to Bermuda, and we may make further moves towards raising capital later this year.” Hoegh believes that it is important that it has a tax competitive domicile, and that shareholders should be taxed on dividends according to the rules of their home country. A substantial portion of the Hoegh fleet has been moved outside of the Norwegian national register, including a number of vessels in the Norwegian International Register (NIS).

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