Mitsui OSK Lines to buy strategic stake in 6 RIL firms

Japanese shipping major Mitsui OSK Lines (MOL) and a minority investor will acquire a strategic stake in six group companies of Reliance Industries Ltd, RIL said on Wednesday.

In a regulatory filing to stock exchanges, RIL said that the parties have signed a definitive binding agreement.

Reliance Ethane Holding Pte Ltd (REHPL), a wholly-owned subsidiary of RIL, has 100 per cent holding in six limited liability companies each of which own very large ethane carriers (VLECs).

"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," RIL Executive Director P.M.S. Prasad said in a statement.

"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" he added.

MOL Executive Vice President Takeshi Hashimoto said that the proposed investment would enable MOL to add six unique VLECs to its existing fleet of over 850 vessels which include LNG carriers, other tankers, dry bulkers, car carriers, ferries, coastal RoRo ships and cruise ships.

"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," Hashimoto said. IANS