Ardmore Shipping’s deal to acquire six modern MR product tankers for $172.5m has got the thumbs up from Deutsche Bank's Amit Mehrotra.
The New York-based analyst says he views the deal, which will be funded with about 60% debt and the rest with new equity, as “positive from several perspectives”.
“We calculate it is neutral to net asset value, with the increased share count offset by the attractive price paid per ship, but importantly has potential to be significantly accretive to net asset value (NAV) on a 12 month basis as surplus cash flow is generated,” says Mehrotra.
He
