November 21, 2019
Team Tankers International Ltd. Announces Share Repurchase Program and Strategic Advisors
The Company has hired strategic advisors to support corporate activity, M&A and divestment opportunities and provide strategic advice to maximize the value of the platform and the assets. The Company has made it clear both in the 2nd and 3rd quarter 2019 press release that it has recently sold a significant number of assets at prices well above what was implied by the 2nd and 3rd quarter 2019 traded share price and illustrated this numerically in the earnings call presentations.
The Company is of the firm belief that there is value in excess of the quoted share price and has initiated a $2.5 million share repurchase program (details below).
Share Repurchase Program
The Board of Directors of Team Tankers International Ltd. has authorized the Company to commence a $2.5 million share repurchase program.
The Board of Directors of Team Tankers International has in a Resolution dated 21 November 2019 authorized the Company to commence a $2.5 million share repurchase program. The objective of the share repurchase program is to reduce the capital of Team Tankers. The share repurchase program will be carried out in accordance with the Bye-Laws of the Company and applicable laws and regulations.
Key terms of the share repurchase program include:
- The maximum consideration that the Company may pay for the shares purchased under the program is USD 2,500,000.
- The shares may be purchased up to NOK 6.00.
- The limit on the number of shares that may be acquired is 5,750,000.
- The share repurchase program period runs from 25 November 2019 and ends on 31 March 2020, both days inclusive.
- No shares may be bought at a price higher than the greater of the share price of the latest independent trade or the highest current independent offer price at Oslo Børs at the time of the trade.
- The maximum number of shares in Team Tankers which may be purchased on each trading day corresponds to 50% of the average daily trading volume of Team Tankers shares in October 2019, amounting to 32,438 shares daily. Due to the low liquidity of Team Tankers' shares, the Company may deviate from the normal 25% limit and the Company also wishes to reserve the possibility of deviating from the 50% limit in the event of being offered a block of shares which Team Tankers can buy at the same levels they would pay in the market.
- The reporting obligations under Norwegian law and Oslo Børs regulations must be fulfilled by Team Tankers within the applicable time limits.
Team Tankers has retained Clarksons Platou Securities AS as sole financial advisor and manager for the share repurchase program.
Forward looking statements
This press release may contain forward-looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Team Tankers International's management's examination of historical operating trends. Although Team Tankers International believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies, which are difficult or impossible to predict and are beyond its control, the Company cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.
Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the chemical tanker market, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company. Forward-looking statements speak only as of the date they are made and neither Team Tankers International nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. Team Tankers International expressly disclaim any obligation or undertaking to update, review or revise any forward-looking statement contained in this announcement whether as a result of new information, future developments or otherwise.
The Board of Directors
Team Tankers International Ltd.
Questions should be directed to:
Hans Feringa: President and CEO
T: +1 203 341 3600
Jens Gisle Schnelle: CFO
T: +1 203 341 3600
About Team Tankers International Ltd.: Team Tankers International Ltd. is a leading chemical tanker company committed to providing safe, reliable and incident free transport services to our worldwide customer base. The Company transports a wide variety of cargoes including organic chemicals, non-organic chemicals, petroleum products, vegetable oils and lube oils. Team Tankers International Ltd. is listed on the Oslo Stock Exchange (TEAM.OL).
This information is subject to the disclosure r equirements pursuant to Section 5-12 the Norwegian Securities Trading Act