Hafnia emerges as largest product/chemical tanker player post Chemical Tankers acquisition

On 11 November Hafnia Limited (Hafnia) announced that it will acquire Chemical Tankers Inc. (CTI) in an all-stock transaction. Hafnia
will acquire all outstanding shares in CTI and in exchange CTI’s shareholders will receive shares in Hafnia representing 21.5% of the
outstanding shares in the combined entity. The purchase consideration has been determined through an NAV for NAV framework, based
on broker values and 1Q21 balance sheets adjusted for other assets and liabilities within each business. Following the transaction, and
based on the current shareholding in CTI, Oaktree Capital Management - CTI’s major shareholder - will own 20.4% of the shares in the
combined entity. The acquisition is expected to be completed by 1 February 2022.
After the acquisition, Hafnia’s owned fleet will increase to 117 product/chemical tankers (including CTI’s 32 product/chemical tankers),
making Hafnia the owner of the second largest product/chemical tanker operating fleet in the world. Additionally, this acquisition paves
the way for Hafnia to enter the stainless-steel chemical tanker market, which is relatively resilient to cyclicality when compared to the
product tanker market.