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Norwegian shipping firm registers in Bermuda at cost $300 million

Norwegian shipping firm registers in Bermuda at cost $300 million

OSLO:  Norwegian shipping group has become the latest Bermuda shipping company to list its shares on the Oslo Stock Exchange after announcing the closing of a deal valued at approximately US$300 million.

Marcello Ausenda, a director in the corporate department in the Bermuda office of Conyers Dill & Pearman, said: “We have advised a number of Bermuda company issuers on the Oslo Bors recently and we are pleased to have been asked to represent Team Tankers International on this substantial transaction.

“We were only able to register 14 vessels all at the same time by collaborating closely with the Department of Marine Administration [DMA] and a local industry partner.”

Last year, Eitzen Chemical shipping group took the decision to redomesticate to Bermuda. As part of the redomestication, the group undertook a restructuring that was completed in January 2015, resulting in the transfer of 14 vessels from the Singapore ship registry to Bermuda.

Following the closing of the restructuring, the group launched an exchange offer that was virtually unanimously accepted by its shareholders. There were also successful retail and employee share offerings that resulted in the shares of new Bermuda holding company being approved for listing on the Oslo Bors from yesterday.

Team Tankers International Ltd. is now the fifteenth Bermuda company listing on the Oslo Bors. According to Mr Ausenda, Conyers has advised all Bermuda company issuers on the Oslo Bors in the past two years including BW LPG Limited, Odfjell Drilling Ltd and Avance Gas Holding Ltd.

“Team Tankers International is precisely the type of client that we want in our jurisdiction. They have substantial assets and they are here for the long term. They took the decision to come here because of the quality of our shipping platform including the high level of services that Bermuda offers across the board in the shipping sector,” said Mr Ausenda.

Chief Surveyor Captain Pat Nawaratne, of the DMA, added: “We are delighted that the Team Tankers International group chose Bermuda as its new home for the 14 vessels that were registered earlier this year.

“We convinced the client that we were up to the challenge of meeting their requirements including the registration of multiple vessels at the same time pursuant to the terms of the restructuring and we were very pleased that we were able to deliver.”

John O’Kelly-Lynch, President of Delphi Management Limited, who is an expert in private international shipping and private equity investment has worked with various Eitzen companies over the years and was also instrumental in bringing the group to Bermuda.

He said: “This group could have literally relocated itself and its vessels anywhere but they chose Bermuda because of the high quality of the jurisdiction as a domicile and the great reputation of the Bermuda ship registry exemplified by the outstanding service that the group received from Captain Pat, Ed Robinson [the Registrar of Shipping] and the entire team at the DMA.”

He said the group may consider relocating senior staff to the Island which would further increase its physical presence and would be another element of good news for Bermuda.