AMSC Sells Tanker Business

American Shipping Company (AMSC) has signed a deal with Project Merchant Acquisition LLC, a newly-formed company owned and controlled by a fund managed by Maritime Partners, for the sale of its subsidiary American Tanker Holding Company.

Pål Lothe Magnussen, CEO of AMSC, said: “The management team at AMSC is pleased that a Maritime Partners managed fund, a leading Jones Act leasing company, is acquiring our Jones Act business. We believe this is the ideal new owner of this business for the next phase in the lifecycle of these assets. AMSC’s ownership tenure has surpassed 18 years since the ships were ordered, during which significant financial profits have been created and provided to AMSC and its shareholders. We believe that the long remaining commercial life of the fleet in combination with strong bareboat charter contract cover in a strong market represents a good opportunity and point in time for us to reconsider capital allocation for AMSC and strategy going forward, and this transaction is a natural step in this process.”

The deal is worth $249.3 million.

AMSC will continue to own the Normand Maximus on bareboat contract to a single purpose subsidiary of Solstad Offshore. AMSC will remain as a public company with shares listed on the Euronext Oslo Stock Exchange and continue to grow within the maritime ship owning and ship leasing market. Aker will remain as a key shareholder, and the existing management and board of directors will continue as is.