Mitsui to buy Reliance ethane carrier fleet

  • RIL has 100% holding in six limited liability companies which own the very large ethane carriers (VLECs)
  • Mitsui OSK has a fleet of over 850 vessels

Mumbai: Reliance Industries Ltd' wholly owned subsidiary Reliance Ethane Holding Pte. Ltd is selling its fleet of six very large ethane carriers (VLECs) through an investment deal with Japanese shipping group Mitsui OSK Lines Ltd, RIL said today.

RIL has 100% holding in six limited liability companies (LLCs) which own the VLECs.

"Mitsui OSK Lines Ltd. (MOL) of Japan and a strategic minority investor have signed binding definitive agreements for strategic investment by MOL and minority investor in the six special purposes limited liability companies, each owning a VLEC," RIL said in a press statement.

Mitsui OSK, which has a fleet of over 850 vessels, and a minority investor signed an agreement to buy stakes in six special purpose companies of RIL, which own a VLEC each, said RIL in a statement.

RIL did not disclose the value of the deal. Transaction closing is subject to regulatory approvals.

P.M.S. Prasad, Executive Director, RIL, said, “Given MOL is currently the operator of all the six VLECs, investment by MOL will deepen our relationship with them and ensure continued safe and efficient operation of the VLECs. We welcome MOL as a strategic partner into the SPVs as they move beyond the current operator role to the joint owner and operator role in the SPVs".

MOL said it has detailed knowledge about these assets having, supervised the construction and delivery of the six VLECs and subsequently operating them since their delivery.

Takeshi Hashimoto, Member of the Board, Executive Vice President, MOL, said, “This investment would enable MOL to add six unique VLECs, which we have been operating for some time now, as owners to its existing fleet of over 850 vessels, which include LNG carrier, other tankers, dry bulkers, car carriers, ferries, and coastal RoRo ships and cruise ships.

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