Pacific Basin Shipping Ltd says it has hired Citigroup Inc to find buyers for its tug business PB Towage, which operates in Australia, southeast Asia and the Middle East.
“We have engaged Citigroup to sound out the market for potential interest in PB Towage,” Hong Kong-based Pacific Basin Shipping chief executive Mats Berglund told DataRoom. “It’s way too early to speculate on whether there will be a deal or no deal.”
PB Towage has 45 tugs and was acquired in 2007 by Pacific Shipping, according to the company website.
Although PB Towage in Australia, which operates in the ports of Brisbane, Port Botany, Melbourne and Newcastle, does not make a profit, any sale may be based on the asset value of its fleet, at least Down Under. The tugs are worth between $3.5 million and $4 million each.
In an announcement to the Hong Kong Stock Exchange today Pacific Basin Shipping says it will give an update on the earnings of its businesses on Friday, when it reports third quarter results.