SOURCE: Golden Ocean Group

September 27, 2010 16:39 ET

GOGL - Increased investment in Knightsbridge Tankers Limited through sale of vessel

HAMILTON, BERMUDA--(Marketwire - September 27, 2010) -


Golden Ocean Group Limited ("Golden Ocean" or the "Company") is pleased to advise that the Company has entered into an agreement with Knightsbridge Tankers Limited ("Knightsbridge") to sell the capesize vessel "Golden Zhejiang" at a sales price of $65,5 million. The vessel will be sold together with the existing 4 year charter agreement. The completion of the transaction is subject to successful financing and equity offering in Knightsbridge Tankers Limited. The deal is expected to be concluded during Q4 2010. The sales proceeds will be used to pay down debt on the asset and the balance, $18,5 million, to acquire a number of restricted common shares in Knightsbridge. Golden Ocean will receive shares at the same price as contemplated in the public offering of shares in Knightsbridge that is launced today. The investment in Knightsbridge is of long term nature. The Board sees this increased investment in Knightsbridge as a strategic holding which gives Golden Ocean the opportunity to, together with Knightsbridge, develop new dry bulk business based on mainly yield driven investment criteria. Such a position creates an additional flexibility for Golden Ocean and increases the possibilities to benefit from different pricing in the asset market, the public market and the yield security market. The strong yield supporting the Knightsbridge stock and the solid contract backlog in Knightsbridge reduces the risk in the equity investment. Knightsbridge's quarterly dividend payments further secure a solid and predictable cash flow for Golden Ocean. Mr Herman Billung, CEO of Golden Ocean Management AS, has also taken a position at the Board of Knightsbridge as of September 24, 2010.

September 27, 2010
The Board of Directors
Golden Ocean Group Limited
Hamilton, Bermuda

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

[HUG#1447173]

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Golden Ocean Group via Thomson Reuters ONE

Contact Information

  • Contact Persons:
    Herman Billung
    CEO
    Golden Ocean Management AS
    +47 22 01 73 41

    Birgitte Ringstad Vartdal
    CFO
    Golden Ocean Management AS
    +47 22 01 73 53