Going “Integrated” is Not Fully Guaranteed Gas Carrier’s Hopes To Draw Following Uncertain

Achieving sufficient scale for public shares to be liquid and attractive to national and international investors was the aim of a recent LPG merger of three Norwegian companies.

The merger of Havtor AS and AS Havtor Management with the gas carrier business of Kvaerner a.s. and PR Nemo, along with vessels/vessel interests from a sprinkling of international companies such as Neste OY and International Shipholding Corp. (ISC), almost triples the equity level in the listed company to NKr 4.3 billion, up from NKr1.6 billion.

As of April 1, the new company, Havtor (Merged), had liquid current assets totaling NKr 437 million; and it holds 10-100% interest in 46 gas carriers, six bulk carriers, two Probo vessels and one product tanker. The gas carriers, with two exceptions, are employed in chartering pools. Three of the bulk carriers have already been sold off, with expectation that sale of the remaining three will soon leave the company as a nearly pure gas carrier play. Still, management said it will not abandon the dry bulk completely, but play on the market cycles.

This is only an excerpt of Going “Integrated” is Not Fully Guaranteed Gas Carrier’s Hopes To Draw Following Uncertain

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