Release Date: 04 February 2009
Release ID: 169
Bocimar International and Fortescue Metals Group (FMG) have agreed to establish a shipping Joint Venture which includes the time chartering of three Bocimar Capesize vessels of which two will deliver promptly. The third vessel will be delivered as from the middle of 2010.
The time charters which were concluded at market rates include a profit sharing arrangement and are all for a period of 10 years. In consideration Bocimar will receive USD 28 million in FMG shares at the market as at 31 December 2009.
In the Joint Venture, both parties will jointly develop existing and future shipping activities. Further and in addition to the above, parties have reached an agreement to terminate two contracts that were concluded in February 2008. As a reminder, it concerns contracts for the use of two vessels, one for a period of ten years and one for five years.
In consideration of Bocimar agreeing to terminate said contracts and discontinuing arbitration proceedings, FMG have agreed to allot FMG shares to Bocimar for an equivalent value of USD 22 million based on FMG’s closing price on 31 December 2008.
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