Shares & Derivatives
FSL Trust: Acquisition.
By A Singaporean Stockmarket Investor (ASSI)  •  June 2, 2011
Nothing much has been happening to FSL Trust lately although its unit price has suffered from weakness. I suspect that the weakness of the US$ and the shipping sector as a whole could have been a dampener. The latest news is an acquisition of a "Long Range II (LR2) product tanker from TORM Singapore, a wholly-owned subsidiary of TORM A/S for US$46 million ($56.7 million).... The transaction will be immediately cash flow accretive to the trust and will increase the trust’s total remaining contracted revenue to US$602 million, excluding extension options. The average remaining lease term of the trust’s portfolio will also remain at the current 6.8 years." Will this be a positive catalyst enough to send its unit price higher?
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By A Singaporean Stockmarket Investor (ASSI)
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