LONDON: Braemar Shipping Services plc (LON: BMS) has sold its remaining AqualisBraemar LOC ASA (AQB) shares, reducing net debt by £7.3 million and realising a profit on sale of £3.9 million.
Braemar received its investment in AQB as a result of the Braemar board’s decision to exit technical services and dispose of its Technical Services division to Aqualis ASA in June 2019 in exchange for a minority equity stake in the combined entity.
AQB is listed on the Oslo Stock Exchange. Braemar sold 9.6 million of its shares in AQB, or around one half of its original interest, in January this year, and its remaining 9,640,261 shares have now been sold at a price of NOK9.0.
The net proceeds of the sale, totalling £7.3 million, will be used to increase the resources available to the Group to pursue its new growth strategy centred on Shipbroking.
The Group’s net bank debt was approximately £10 million at 28 February 2021. The carrying value of the AQB shares sold was £3.3 million, realising an estimated profit on disposal of £3.9 million.
Following the sale, Braemar’s interest in AQB shares will be limited to its holding of 6,523,977 performance-based warrants, of which one million are expected to vest shortly.
James Gundy, Chief Executive Officer of Braemar, commented: “We are pleased to have completed the sale of our remaining shares in AqualisBraemar LOC on the back of their strong recent trading, in order to focus on the delivery of our new growth strategy centred on Shipbroking. The sale also helps to continue to reduce the Group’s net debt and strengthen our balance sheet, positioning the Group well for future growth.”
Braemar is a leading international Shipbroker and provider of expert advice in shipping investment, chartering and risk management. Braemar employs approximately 530 people in 30 locations worldwide across its Shipbroking, Financial and Logistics divisions.
Braemar joined the Official List of the London Stock Exchange in November 1997 and trades under the symbol BMS.
Braemar Shipping Services plc (LON: BMS)
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208.66 GBX 0.00 (0.00%)
19 May, 4:30 pm GMT+1 · Disclaimer
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