RIYADH : Bahri announced that its subsidiary Bahri Dry Bulk Company (owned 60% by Bahri) (BDB) has signed today 22 Feb 2017 a joint venture agreement with Koninklijke Bunge B.V. (Netherlands Company) (Bunge) (the Agreement). Pursuant to the Agreement, BDB and Bunge intend to establish a joint venture in Dubai, UAE, with some intended capital commitments from share holders in the joint venture.
The joint venture will be engaged in chartering vessels for the purpose of importing and exporting dry bulk commodities into and from and within certain countries in the Middle East. BDB will own (60%) of the shareholding in the joint venture and Bunge will own the remaining (40%). While the initial term of the joint venture agreement is five years, the parties expect the duration of their cooperation to be substantially longer.
BDB and Bunge expect to complete the establishment of the joint venture by the second quarter of 2017. Financial impact is expected starting from the fourth quarter of 2017 and Bahri will announce any material developments once available.