Greece’s tanker shipowner Top Ships led by Evangelos J. Pistiolis has entered into a share purchase agreement with a related party to purchase the shares of four companies which have entered into shipbuilding contracts with Guangzhou Shipyard International Company Limited for the construction of four 50,000 dwt eco, ice class 1A MR product tankers to be delivered between June 2029 and March 2030.
The four companies are finalizing lease financing agreements, arranged by the seller with a major Chinese leasing company, covering approximately 85% of all shipbuilding installments.
The companies have secured time charter employment for the vessels with an oil major, commencing upon their deliveries, for a firm duration of seven years, with the charterer holding options to extend for up to three additional years.
The total potential gross revenue backlog from these contracts, assuming the exercise of all available charter extension options, is approximately $316.9m.
The aggregate purchase price for 100% of the issued shares of the four companies is approximately $34.95m and is payable by 31 December 2026. The closing of the transaction is subject to customary closing conditions and the successful conclusion of the financings by the seller.
The Athens-based TOP Ships said the acquisition was approved by a special committee consisting of independent and disinterested members of the company’s board of directors, which obtained a fairness opinion with respect to the consideration from an independent financial advisor.
Evangelos J. Pistiolis, president and chief executive officer of Top Ships, said: “Today’s deal is consistent with our recently announced redeployment of capital into our core tanker business, while at the same time further expanding our ice class fleet to 7 vessels and diversifying our charterer base with the addition of another oil major.
“These four high-specification, ice class vessels enhance the trading flexibility of our fleet, and their seven-year firm charters provide long-term contracted employment with a first-class counterparty well into the next decade.
“The total potential gross revenue backlog from these four newbuilding MR tankers, assuming the exercise of all available charter extension options, is approximately $317 million. Upon closing of this transaction, the total potential gross revenue backlog, from our fourteen newbuilding MR tankers, assuming the exercise of all available charter extension options, will be approximately $997 million.
“Including contracted time charters for our operating fleet and our 50% proportionate share of the backlog attributable to our JV vessels, total potential gross revenue backlog – including optional periods – will increase to approximately $1.24 billion, demonstrating the strength and visibility of our future potential cash flows.
“We remain focused on building a modern, high-specification fleet, with approximately 85% of the shipbuilding installments financed, employed on long-term charters with leading energy companies and traders, which we believe enhances the stability of our future revenue streams and positions the company well for the next chapter of its development.”
The company’s tanker operating fleet has a total capacity of 857,000 dwt and consists of one 50,000 dwt product/chemical tanker, one 157,000 dwt suezmax tanker, two 300,000 dwt VLCCs and, through a joint venture, 50% interests in two 50,000 dwt product tankers.
Top Ships has entered into newbuilding contracts for ten 50,000 dwt MR newbuilding tankers scheduled for delivery from the second quarter of 2028 through the fourth quarter of 2029.
In addition, the shipping company has entered into a share purchase agreement to acquire four shipowning companies that have entered into newbuilding contracts for four high-specification 50,000 dwt MR newbuilding tankers scheduled for delivery from the second quarter of 2029 through the first quarter of 2030, with closing being subject to customary closing conditions and the successful conclusion of the financings by the seller.
It also owns the megayacht Para Bellvm, which it has announced its intention to divest.
