Performance Shipping Buys a Tanker

Greece-based global provider of shipping transportation services through its ownership of vessels has agreed to acquire a 2007-built aframax tanker for US$26.0 million.

The company specializing in the ownership of containerships and tanker vessels said that it will acquire the entity from its Chairman and Chief Executive Officer, Symeon Palios, for an aggregate purchase price of US$11.0 million, which will be paid in common shares of the company at a per share price of US$0.9027. It is equal to the undiscounted closing price of the common stock on the NASDAQ stock exchange on November 18, 2019.

The US$11.0 million purchase price of the entity is equal to the deposit previously paid to the vessel’s seller by an affiliate of the Performance Shipping ’s Chairman.

The balance of the purchase price payable under the contract is expected to be funded through cash on hand and/or bank financing. The vessel is expected to be delivered at the latest by January 31, 2020.

Symeon Palios, the company’s Chairman and Chief Executive Officer, stated: “I am happy to be able to facilitate the Company’s continued expansion of its fleet with the sale of this Aframax vessel.  By taking consideration solely in common shares at their current market price, this transaction both supports the Company’s balance sheet and reflects my continued confidence in its future growth.”