US-listed boxship player Performance Shipping has made a move into the tanker market, emerging as the new owner of an aframax pair reported sold earlier this month.
The company announced on Tuesday it has agreed to acquire two entities affiliated with its chairman Simeon Palios, which originally agreed to spend $60m in total to buy the 2011-built aframaxes from a third, unaffiliated party.
The description fits the 105,000-dwt Maersk Jamnagar and Maersk Jeddah (both built 2011), which TradeWinds reported as sold to unidentified Greek buyers.
Today's announcement by Performance Shipping, formerly known as Diana Containerships, clarifies that the tankers were privately acquired by Palios, who is now flipping them over to the public company in a deal approved by the latter's directors.
"The acquisition of these vessels represents an important step in the company’s diversification from the container industry into other areas of the shipping sector," Palios said in the statement.
Performance will purchase the two Palios entities for $10m, payable in common shares of Performance Shipping at $1.05 apiece. "The sale of these contracts for common shares of the company [Performance Shipping] reflects my view that now is an attractive time to invest in the company as it starts to rebuild its fleet,” Palios added.
The remaining $50m will most likely be funded through a combination of cash on hand and bank financing, said Performance, which currently has four containerships in its fleet.