TOP Ships Inc., one of the owners and operators of modern and efficient international tanker vessels, announced that it has signed a contract to acquire the shares of four special purpose vehicles (SPVs) that have entered into a shipbuilding contract with Guangzhou Shipyard International. These companies are constructing four high-specification MR tankers with ice class 1A, which are scheduled for delivery between June 2029 and March 2030.
Financial and Financing Details
The SPVs are finalizing financing agreements with a major Chinese leasing company that will cover approximately 85% of the total shipbuilding installments. These tankers will be leased for seven years to a major oil company, and the contracts include options for extensions of up to three additional years.
In total, the potential gross revenue from these contracts, assuming all extension options are utilized, amounts to approximately $316.9 million. The purchase price for 100% of the issued shares of these SPVs is approximately $34.95 million (contract amount) and will be paid by December 31, 2026. The finalization of this transaction is subject to customary closing conditions and successful financing outcomes.
Expert Reviews and Future Impacts
This acquisition has been approved by a special committee consisting of independent members of the company’s board, which has received expert opinion on the contract amount from an independent financial advisor. The CEO of the company stated regarding this transaction: "This contract aims to redistribute capital towards our core business in the tanker sector and also expand our ice class fleet to 7 vessels, diversifying our pool of lessors."
These four high-specification tankers will add greater flexibility to our fleet, and their seven-year contracts provide long-term employment with a reputable business partner. With the completion of this transaction, the total potential gross revenue from the four new tankers will reach $997 million. Considering the valid charter contracts for the operational fleet and our 50% share of the revenues from joint vessels, the total potential gross revenue will increase to approximately $1.24 billion.
