Tianjin Marine, an arm of HNA Logistics owned by HNA Group, is expected to proceed with its planned order for VLCCs and LNG carriers after obtaining Chinese regulatory approval for a share issue.
Shanghai-listed Tianjin Marine announced that the China Securities Regulatory Commission has endorsed a private sale of up to 3.45m shares.
The share issue is expected to raise cash for its proposed acquisition of 10 VLCCs and four LNG carriers. The company will use about $400m of raised funds to order the first four VLCCs.
Tianjin Marine had announced the fleet expansion plan back in August 2013, revealing that the 10 VLCCs could cost a total of RMB5.52bn ($898.7m) and the four 160,000 cu m LNG carriers a total of RMB4.9bn.
Tianjin Marine will select a local shipyard to construct the newbuildings via a public bidding process.
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