Scorpio Bulkers Inc. has agreed to invest US$100 million in a related party, Scorpio Tankers Inc.
The investment is part of a larger US$300 million equity raise through a public offering of common shares by Scorpio Tankers announced on 9 October. As a result of this investment, the company will own approximately 54.1 million, or 10.9%, of Scorpio Tanker’s issued and outstanding common shares. The investment was unanimously approved by an independent committee of the Board of Directors that was advised by Perella Weinberg Partners.
Emanuele Lauro, Chairman and CEO, commented: “This investment in Scorpio Tankers, one of the world's leading product tanker companies, is a compelling opportunity for the company. Our Board of Directors has been evaluating the best uses of available capital, and after careful consideration identified this unique investment opportunity as one with superior risk-reward attributes, allowing us to invest in a business that is very well known to us and to participate in the expected strong cyclical recovery in the product tanker market towards positive regulation-led market disruption in 2020. Scorpio Bulkers is steadfast in our commitment to shareholder return over the long-term. The company is highly focused on shareholder value and the deployment of capital with that priority objective.”
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/10102018/scorpio-bulkers-to-invest-us100-million-in-scorpio-tankers/
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