Petros Panagiotidis-led Toro Corp. has decided to initiate a spin-off of its handysize tanker business comprising of one handysize tanker and Xavier Shipping Co. (subsidiary formerly owning the vessel Wonder Formosa).
The Nasdaq-listed company said in the in the spin-off, Toro shareholders will receive one common share of Robin Energy Ltd., a newly formed subsidiary that will act as the holding company for the one tanker vessel, for every eight Toro common shares.
The company Robin has applied to have its common shares listed on the Nasdaq Capital Market.
Petros Panagiotidis, Toro’s chairman and CEO, has been appointed as chairman and chief executive officer of Robin with effect as of the completion of the spin-off.
The company clarified that there can be no assurance that the spin-off will occur or, if it does occur, of its terms or timing.
It remains subject to the registration statement on Form 20-F being declared effective and the approval of the listing of Robin’s common shares on the Nasdaq Capital Market.
“The Board believes that the creation of a business in a distinct sector of the shipping industry-Handysize Product Tankers-will provide significant benefits to both companies and their shareholders,” Toro said in its release.
“The transaction is expected to enable each of Toro and Robin to increase its focus on their respective line of businesses, enhance operational efficiencies, facilitate efficient strategic expansion, attract new investors, and, with this dividend distribution of Robin common shares, give Toro shareholders the flexibility to monetize or adjust their equity holdings according to the shipping sectors in which they want to invest,” it added.
Toro Corp., with a fleet of tankers and LPG carriers, currently owns a fleet of five vessels with an aggregate capacity of 0.1 million dwt, which consists of one handysize tanker and four 5,000 cbm LPG carriers.
