Mumbai: Reliance Ethane Holding Pte. Ltd. (“REHPL”) (incorporated in Singapore, a wholly owned subsidiary of Reliance Industries Limited (“RIL”), having 100% holding in six limited liability companies (LLCs) which own Very Large Ethane Carriers (“VLEC” or the “Vessel”), Mitsui O.S.K Lines Ltd. (“MOL”) of Japan and a strategic minority investor have signed binding definitive agreements for a strategic investment by MOL and minority investor in the six special purpose limited liability companies (“SPVs”), each owning a VLEC.
Transaction closing is subject to regulatory approvals. Post-closing SPVs shall be jointly controlled by REHPL and MOL.
Speaking on this strategic transaction, Mr. 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 the joint owner and operator role in the SPVs”.
Mr. 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”.
About Reliance Industries Limited
Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of INR 430,731 crore ($ 66.1 billion), cash profit of INR 56,034 crore ($ 8.6 billion), and net profit of INR 36,075 crore ($ 5.5 billion) for the year ended March 31, 2018. RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 148th in terms of revenues, and 99th in terms of profits. The Company stands 83rd in the ’Forbes Global 2000’ rankings for 2018 – the top-most among Indian companies. It ranks 10th among LinkedIn’s ‘Top Companies Where India Wants to Work Now’ (2019).
About Mitsui O.S.K. Lines Limited
Mitsui O.S.K. Lines, Ltd (MOL), one of the largest shipping companies in the world celebrating its 135th anniversary, provides ocean shipping services internationally. It owns and operates a fleet size of over 850 vessels and is also the largest LNG carrier in the world. MOL’s fleet also includes other tankers, dry bulkers, car carriers, ferries, and coastal RoRo ships and cruise ships. MOL also own container ships which are chartered by ONE. MOL is listed on the Tokyo Stock Exchange and has a market capitalization of about US$2.8bn.