India's Reliance Industries to sell stake to Mitsui OSK in six LLPs
India's Reliance Industries Ltd has entered into a pact with Japanese shipping company Mitsui O.S.K. Lines Ltd (MOL), to offer strategic stake in its 100 percent controlled six limited liability companies (LLPs) owning very large ethane carriers (VLEC), a Reliance Industries press release said Wednesday.
"Given MOL is currently the operator of all the six VLECs, investment by MOL will deepen our relationship with them and ensure continued safe and efficient operations of the VLECs. We welcome MOL as a strategic partner into the SPVs as they move beyond the current operator role to joint owner and operator role in the SPVs," said P.M.S. Prasad, executive director of Reliance Industries.
Reliance Ethane Holding Pte. Ltd, incorporated in Singapore and a wholly owned subsidiary of Reliance Industries has 100 percent controlling stake in these six LLPs. The transaction is subject to regulatory approvals and the LLPs will be jointly controlled by two companies. The financial terms of the deal were not disclosed.
"This investment would enable MOL to add six unique VLECs, which we have been operating for some time now, as owners to its existing fleet of over 850 vessels which include LNG carrier, other tankers, dry bulkers, car carriers, ferries and coastal RoRo ships and cruise ships," Takeshi Hashimoto, member of the board, executive vice president of MOL said.
MOL owns and operates a fleet size of over 850 vessels including tankers, dry-bulk vessels, car carriers, RoRo ships and is also the largest LNG carrier in the world.