Released: 08/12/2009
Click for Link:
http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20091208:nRSH7378Da
RNS Number : 7378D
Baltic Oil Terminals Plc
08 December 2009
8 December 2009
BALTIC OIL TERMINALS PLC
("Baltic" or the "Company")
New Oil Products Trading Joint Venture
Baltic announces that it has entered into a binding heads of agreement ("Heads of Agreement") to create a trading joint
venture with Exoy Holding AG ("Exoy"), a Swiss-based trader of refined oil products.
Under the Heads of Agreement, Baltic and Exoy have agreed to enter into a Share Purchase Agreement and a Joint Venture
Agreement in relation to the establishment of a joint venture (the "Joint Venture") through the sale of 51 per cent. of
Baltic's wholly owned trading subsidiary Baltic Hydrocarbons Limited ("BHL") to Exoy for nominal consideration. BHL
reported turnover and profit before tax for the year ended 31 December 2008 of $14.7 million and $0.3 million respectively.
Baltic has agreed that net assets of BHL at completion of the sale of the shares will be greater than or equal to zero.
Under the terms of the proposed Joint Venture Agreement, both Baltic and Exoy will each nominate two directors to sit on
the Joint Venture's Board. The Joint Venture will be headquartered in Novorossiysk, Russia with hubs in Mannheim and
Hamburg, Germany.
It is proposed that Exoy will procure the supply of refined oil products to be sold by the Joint Venture on its behalf. As
the first stage in cementing the Joint Venture Agreement, Exoy has undertaken that by 31 December 2009 it will procure a
minimum of 150,000 tonnes of distillates and lubricants for BHL to sell on behalf of Exoy.
It is intended to agree the detailed terms of the Share Purchase Agreement and Joint Venture Agreement as soon as possible
and a further announcement will be made in due course.
Exoy is headquartered in Switzerland but trades oil products and other commodities all over the world. It has access to the
some of the world's largest suppliers of oil products and is also able to secure suitable financing from a wide range of
banks and other financiers, allowing it to move swiftly to take advantage of opportunities to source and finance products
from all around the world.
It is intended that the Joint Venture will become a major trading vehicle for both Baltic and Exoy. The Directors of Baltic
therefore believe that the Joint Venture has potential to generate significant shareholder value through executing high
volume and profitable trades.
Enquiries:
Baltic Oil Terminals plc Tel: +44 (0)20 7034 7030
Simon Escott, Chief Executive
Arbuthnot Securities Limited Tel: +44 (0)20 7012 2000
Alastair Moreton, Corporate Finance
Pelham PR
Archie Berens Tel: +44 (0)20 7337 1509
This information is provided by RNS
The company news service from the London Stock Exchange