Tiger Group and SCPE in chemical tanking venture

Tiger Group Investments and Standard Chartered Private Equity (“SCPE”) have agreed to jointly invest US$95 million in Greathorse Chemical Ltd. (“the Company”). The Company will also be receiving investments of US$65 million from other financial investors such that the total initial investment will be US$160 million.

Greathorse Chemical is an owner and operator of modern small to mid-sized chemical tanker vessels, which are used to transport fine chemicals and vegetable oils for top tier industrial customers. The Company plans to use the proceeds from this investment to fund the construction of high quality stainless steel vessels and acquire best in class vessels from the resale market. The Company has an existing fleet of eight vessels and has a further four vessels under construction. Over the next few years the Company aspires to become a leading Asian owner/operator of chemical tankers. The expanded fleet will enable Greathorse Chemical to service the rapidly growing global demand for fine chemicals / vegetable oils.

Graham Porter of Tiger Group Investments said: “We think that the chemical tanking business offers attractive returns for investors as we believe the demand for chemical shipping services is expected to grow over the next several years. The establishment of Greathorse Chemical is an extension of our well established and successful investment strategy to exploit high value niches in the shipping and offshore oilfield services industries. We are extremely pleased to be able to partner with Standard Chartered for this new venture as we believe that the institution will bring significant financial and commercial benefits to the partnership and the Company.”

Greg Karpinski, Managing Director of SCPE said: “We are proud to have been chosen as a strategic partner by Tiger, who is a recognised global leader in a number of segments in the shipping industry.” Kanad Virk, Managing Director of SCPE added: “This investment is a landmark deal for our Energy, Resources and Infrastructure team as it represents our first deep water shipping investment. We believe that we are working with a world class partner in an exciting sector with tremendous growth potential.”
Source: Tiger Group Investments