The Board of Directors of FSL Trust Management Pte. Ltd., as trustee-manager of First Ship Lease Trust, refers to its announcement dated 24 June 2022 and further announces that the disposal of the vessel FSL London (the “Vessel”) has been completed with the successful delivery of the Vessel to the new owners Beas Lines Inc. (the “Buyer”), an unaffiliated third party, on 1 July 2022 (the “Disposal”).
The gross consideration paid by the Buyer for the Vessel upon delivery was US$12.1 million, which was arrived at after arm’s lengths negotiations between FSL-10 Pte. Ltd., the subsidiary of the Trust that owned the Vessel, and the Buyer on a “willing buyer willing seller” basis.
Having taken into consideration the prevailing and expected charter market environment and earnings prospects for the Vessel, the capital expenditure for the upcoming dry-docking for special survey of the Vessel and the installation of a mandatory ballast water treatment system, (new) environmental regulations, the Vessel’s expected economic life and residual value, and the supply and demand for vessels of the same type and with similar specifications in the sale and purchase market, the Board concluded that the Disposal would be value accretive and more beneficial to the Trust and its unitholders than keeping the Vessel in the portfolio of the Trust.
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Source: FSL Trust