Bahri and Vela merger gets 60% shareholder approvalBahri and Vela merger gets 60% shareholder approval

At an Extraordinary General Meeting (EGM) on 19 June, attended by 59.78% of shareholders, 99.99% voted in favour of the move, which would have Bahri take over Vela’s fleet and operations.

Ceo Saleh Al-Jasser said: “The results of the attendance and voting reflect shareholders support and confidence in the company’s policy to develop its business areas in order to enhance its growth and its expansion.”

The approval is the last regulatory approval necessary for the merger, and the process “will complete… during a period not exceeding one month from the date”, adding that following the agreement Bahri will become the third-largest VLCC owner in the world, with a fleet of 32 tankers. “This transaction represents an added value to Bahri and to Saudi Aramco and the economy of the Saudi Arabia."

The development amounts to the overcoming of another hurdle in the ongoing merging process, which began in 2012. In May, Bahri elected to increase its capital from SAR3.15bn ($840m) to SAR3,94bn for the purpose.

Further, on 22nd June 2014 the company signed an agreement to obtain Shariah-law compliant Murabaha financing with JP Morgan, SAMBA and SABB for SAR3.18bn.