Mitsui OSK Lines (MOL) of Japan and a strategic minority investor have signed definitive agreements to acquire strategic stake in six group companies of Reliance Industries (RIL) , each of which own Very Large Ethane Carriers (VLEC). The financial terms of the deal were not disclosed.

RIL holds the stake in the VLECs through a wholly-owned subsidiary Reliance Ethane Holding Pte Ltd (REHPL). Following the completion of the transaction, which is subject to regulatory approvals, the six group companies (Special Purpose Vehicles) will be jointly controlled by REHPL and MOL, RIL said in a statement.

“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,” PMS Prasad, Executive Director at RIL said in a statement.

“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 the liquefied natural gas (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 use this strategic opportunity to be a joint owner and to significantly strengthen our existing relationship with Reliance,” Takeshi Hashimoto, Director and and Executive Vice President at MOL said.

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