Posted on: 28 January 2021
Braemar Shipping Services plc (LSE: BMS), a leading international provider of shipbroking, financial advisory, and logistics services principally to the shipping and energy industries, has announced that further to the announcement made yesterday in relation to the potential sale of up to 9,600,000 existing AqualisBraemar LOC ASA (“AQB”) shares held by Braemar (“AQB Shares”), the Company is pleased to announce that 9,600,000 AQB Shares were sold at a price of NOK7.50 per AQB Share (the “Sale”).
The net proceeds of the Sale, totalling £6.0 million* will be used to reduce the Group’s net bank debt which was £19.3m at 31 August 2020. The carrying value of the AQB Shares sold was £3.2 million equating to a profit on disposal of £2.8 million. Subsequent to the Sale, Braemar has an interest in 9,640,261 AQB Shares representing approximately 10.4% of the total issued share capital of AQB. Braemar will enter into a customary 90 day lock-up period for its remaining shares in AQB and will continue to be represented on the board of AQB through board member Ron Series, the Chairman of Braemar.
Braemar’s Chief Executive Officer James Gundy commented: “We have been very pleased with the performance of AqualisBraemar and its management team since the combination of Braemar Technical Services with Aqualis ASA in June 2019. The Board is however conscious of the net indebtedness of the Group and the realisation of some of our shares in AqualisBraemar represented an efficient and attractive way to strengthen our balance sheet.”
*NOK/GBP 0.085
