Business & Economy

Mitsui O. S. K. Lines to acquire strategic stake in six group companies of RIL

NetIndian News Network

Mumbai, April 17, 2019

Mitsui O. S. K. Lines (MOL) of Japan and a strategic minority investor have signed binding definitive agreements for strategic investment by them in six special purpose limited liability companies (SPVs), part of the Reliance Industries Limited (RIL) group.
Each of the SPVs owns a Very Large Ethane Carrier (VLEC), a press release from Reliance said.
The agreement has been signed by MOL and the strategic minority investor with Reliance Ethane Holding Pte. Ltd. (REHPL), incorporated in Singapore and a wholly owned subsidiary of RIL, which has 100% holding in the six limited liability companies (LLCs).
"Transaction closing is subject to regulatory approvals. Post-closing, SPVs shall be jointly controlled by REHPL and MOL," the release said.
P.M.S. Prasad, Executive Director, RIL, said “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."
Takeshi Hashimoto, Member of the Board, Executive Vice-President, MOL said, “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. We also have container ships which are chartered by ONE. MOL has detailed knowledge about these assets having supervised the construction and delivery of the six VLECs and subsequently operating them since their delivery. We are therefore happy and look forward to using this strategic opportunity to be a joint owner and to significantly strengthen our existing relationship with Reliance."
MOL is one of the largest shipping companies in the world and owns and operates a fleet size of over 850 vessels. It is also the largest LNG carrier in the world. 
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