Maersk offer to the shareholders in Broström AB

The combination of the two companies will form the world’s leading product tanker company with a combined owned and long term chartered fleet of more than 130 vessels. The cash offer values the share capital of Broström at SEK 3.62 billion.

The demand for energy transportation is expected to continue to grow which together with the International Maritime Organisation’s (IMO) phase out regulation of single hull tanker vessels by 2010, underlines the positive business environment for the tanker market. It is in this light that A.P. Moller - Maersk has previously stated its intention to invest in Maersk Tankers as one of the growth areas within the Group.

“The scale of the combined operation will enable us to offer a superior world wide service through a large, modern and homogeneous fleet. We need scale to ensure our organisation is cost effective and for customers to have easy access to chartering offices globally. Combining Maersk Tankers and Broström’s scale with skilled and dedicated employees will further enhance our competitive position and create the world’s leading product tanker company”, says Søren Skou, CEO of Maersk Tankers and member of the A.P. Moller - Maersk Group Executive Board.

The holders of all shares of class A in Broström, together holding shares of class A and B representing 29.3% of the capital and 55.9% of the votes (based on 63,543,184 class A and B shares outstanding, i.e. excluding 2,254,000 treasury shares), have irrevocably undertaken to accept the Offer. The Offer is formally made through Maersk Product Tankers AB, a wholly owned subsidiary of A.P. Møller - Mærsk A/S.

“From a business point of view there is a good match between our two companies”, says Lennart Simonsson, CEO of Broström. “In our evaluation of various partners to team up with in the consolidation process it is our view that Maersk Tankers is one of the best partners. Both companies have a long and strong heritage in the tanker market and our combined resources give us a platform to further develop from”.

Following the completion of the Offer, it will be evaluated how all partnerships and commercial agreements can be integrated into the future structure of the business.

“It will be business as usual until we have full control and have received approval from relevant competition authorities”, says Søren Skou.