Nasdaq-listed Toro Corp. has proposed a spin-off of its LPG carrier business. The subsidiary of Toro, AI OKTO, would become an independent publicly-traded company listed on the Nasdaq capital market as a result of the planned spin-off.
The initial assets of AI OKTO will include two LPG carriers, the 4,752-dwt LPG Dream Arrax (2015-built) and 5,155-dwt LPG Dream Vermax (2015-built), and $45m in cash contributed by Toro.
Toro believes that the creation of a pure-play LPG company will provide significant benefits to both Toro and AI OKTO and their shareholders.
Petros Panagiotidis, Toro’s chairman and chief executive officer, will be appointed as chairman and chief executive officer of AI OKTO.
The transactions effected in connection with the spin-off will be approved by Toro’s board of directors on the recommendation of a disinterested and independent special committee.
The spin-off remains subject to the registration statement being declared effective and the approval of the listing of AI OKTO’s common shares on Nasdaq.
The company said there can be no assurance that the spin-off will occur or, if it does occur, of its terms or timing.
The company’s fleet comprises two LPG carriers and two MR tanker vessels transporting petrochemical gases and refined petroleum products worldwide.
