TORM Buys Three MR Tankers

Danish tanker shipping company TORM on Thursday announced it has entered into an agreement to buy three secondhand MR tankers from an undisclosed seller.

The MR eco product tankers were built in South Korea in 2013, now purchased by TORM for a total cash consideration of $48.5 million and the issuance of 1.42 million shares, the company said.

Slated for delivery before May 31, the ships will increase TORM’s total fleet to 88 vessels on a fully delivered basis.

TORM said it expects to finance the cash element of the transaction through traditional bank financing, and in connection with each of the three deliveries the company will issue one third of the total share issuance, corresponding to 50% of the total consideration.