* Ross, First Reserve, CIC, Fairfax commit to invest
* Diamond to buy 30 product carriers from Cido Tanker
(Adds details, CEO quote)
By Krishna N Das
BANGALORE, Aug 1 Diamond S Shipping said WL
Ross, First Reserve and other global institutional investors
have committed about $1 billion in equity to the privately held
U.S. shipping group as it looks to expand its fleet amid rising
demand for oil.
Diamond will buy 30 medium-range refined product carriers
from privately-owned Cido Tanker Holding Co under a deal
expected to close in this calendar quarter. This will add to its
fleet of 10 tankers under construction in Korean shipyards.
To ensure a smooth transaction of existing charters,
third-party management contracts, flags and classifications of
the ships, the Cido deal was structured as the purchase of stock
in companies that own the 30 product carriers.
Diamond CEO Craig Stevenson Jr told Reuters it was "very
attractive to buy assets" as the shipping industry grapples with
vessel oversupply issue.
Diamond was founded in 2007 by First Reserve and Stevenson
to create an energy-focused shipping company. Prior to that,
Stevenson led OMI Corp that was sold for $2.2 billion.
Apart from First Reserve and Ross, the other equity
investors in Diamond are China Investment Corp , Fairfax
Financial Holdings Ltd , Morgan Creek Capital Management
and PPM America Capital Partners.
"We have been looking for the right opportunity in the
shipping industry for some time," said Wilbur Ross Jr., Chairman
of WL Ross & Co.
Replying to a question whether the investments were a
prelude to Diamond going public, Stevenson said: "When you add
all the ships together, the 40 ships, it's identical to the
public company that I was in... so it would resonate with the
(Reporting by Krishna N Das in Bangalore; Editing by David