Bahri and Aramco to Merge Vela's Fleet and Operations with Bahri

The National Shipping Company of Saudi Arabia ("Bahri") announces today that Bahri, the Saudi Arabian Oil Company ("Saudi Aramco") and Vela International Marine Limited ("Vela"), a wholly owned subsidiary of Saudi Aramco, have executed definitive and legally binding agreements (the "Transaction Agreements") to merge the fleet and operations of Vela and Bahri (the "Transaction").

Execution of the Transaction Agreements took place in Riyadh on 4 November 2012 after the closing of trading on the Saudi Stock Exchange (Tadawul) and follows the announcement by Bahri on 20 October 2012 of the parties' agreement on the terms and conditions of the Transaction and approval of such terms and conditions by the parties respective boards of directors. 

The Transaction is subject to a number of conditions, including the approval of the Transaction and the related capital increase by Bahri's shareholders at an Extraordinary General Assembly and receipt of required approvals from relevant regulatory authorities including, without limitation, the approval of the Capital Market Authority and Supreme Council for Petroleum and Mineral Affairs. 

Subject to the parties ability to obtain the required regulatory approvals for the Transaction, Bahri expects to convene the Extraordinary General Meeting towards the end of Q1 2013.

If all the relevant resolutions are approved, the initial transfer of vessels is expected to occur in Q2 2013 and the final transfer of vessels is expected to occur early in Q3 of 2013.