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Marine Log

January 24, 2008

Torm takes stake in FR8

Copenhagen-based A/S Dampskibsselskabet Torm, which last year acquired OMI, is still in an expansive mood. It reports that it has acquired a 50 percent equity stake in the shipping company FR8 Holdings Pte. Ltd. ("FR8") from FR8 Limited, a subsidiary of the international oil trader Projector. The FR8 Group has offices in Singapore, London and Veracruz in Mexico and employs about 30 staff worldwide. Projector will continue to own its equity interest in FR8.

The purchase price for the 50 percent equity stake in FR8 amounts to $125 million which Torm says reflects the current value of similar shipping companies.

Torm says the acquisition will give its fleet access to oil cargoes from Projector and FR8. In addition, the it will give Torm insight into the demand parameters influencing the product tanker market.

The FR8 Group controls 25 vessels including three LR2 newbuildings for delivery in 2008. It owns six modern product tankers, comprising four MR and two LR1 vessels. It has long-term charters on three LR2, four LR1 and eleven MR product tankers, with purchase options on three of these vessels. The FR8 Group also commercially manages an LR2 vessel.

The agreement is subject to merger control approval and execution.

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