In International Shipping News 08/05/2015
Parakou Tankers, Inc. (“PTI”) and Cambridge Capital Acquisition Corporation have agreed to terminate their proposed merger as final terms could not be agreed upon. While PTI believes investors were favorably disposed to PTI and the product tanker sector fundamentals overall, challenges were met in overcoming issues related to the structure of the transaction.
Por Liu, Chairman and CEO of PTI, commented: “Despite investor interest in the product tanker sector, we were not able to achieve the desired outcome through the current structure. As a fully integrated industrial shipping company, engaged in the seaborne transportation of liquid petroleum products with a current fleet of eight modern MR product tankers, we remain committed to growing our company through other sources. While we are disappointed that we could not come to terms on this merger, we are resolute in our belief that we will grow our company to be a leader in the product tanker sector.
“The fundamentals of the product tanker market remain strong. Following the favorable trend started at the end of last year, the sector spot market has improved significantly in the first quarter of 2015, reaching its highest levels since the financial crisis in 2008. While MR ton-mile demand should continue to increase, supply also should be limited, which we believe will allow charter rates to strengthen.”
Parakou is a fully integrated industrial shipping company engaged in the seaborne transportation of liquid petroleum products that owns and operates a fleet of modern medium range, or MR, product tankers. As of the date of this press release, Parakou’s fleet consists of eight 51,000 deadweight ton MR product tankers, which were transferred in July 2014 from Parakou (International) Limited, a Hong-Kong based shipping firm founded in 1985. Parakou was incorporated under the laws of the Marshall Islands in January 2014 and is headquartered in Singapore.
