Liquid transport solution provider Stolt-Nielsen SA (SNSA) has announced plans to move its parent company to Bermuda from Luxembourg, where SNSA is currently registered.

John Wakely, executive vice-president of Stolt-Nielsen, told The Royal Gazette yesterday that the proposed move, which is expected to take place at the end of this year, would enable the company and its shareholders to continue to benefit from a similar legal structure to which the company experienced as a holding company in Luxembourg since 1974.

The proposal is subject to the approval of SNSA shareholders and will be voted on at an extraordinary general meeting held in Luxembourg at a date yet to be confirmed.

The announcement comes two months after Flagstone Reinsurance Holdings moved in the other direction after changing its corporate domicile to Luxembourg following approval from its shareholders at the company's annual general meeting in May.

If approved, the move is expected to be completed by the close of the SNSA's fiscal year on November 30, 2010. It is not expected to result in any significant practical changes, from either a shareholder perspective or in terms of the company's functional structure, locations or operations, as well as an increase in the number of employees.

Luxembourg's special holding company regime will end as of December 31, 2010, as part of ongoing initiatives to harmonise laws and regulations among the member states of the European Union (EU).

Mr. Wakely said SNSA had enjoyed the equivalent status to an exempt company under the 1929 Billionaire Holding Company regime, but the EU had put Luxembourg under pressure to fall into line with the rest of the European community and the regime had been abolished.

He said the company's board of directors had been considering its options, including moving its holding company to another jurisdiction, deciding on Bermuda as the best choice.

"It seemed that Bermuda offered the best opportunity to continue or allow the company and shareholders to continue to to enjoy the benefits of Luxembourg in Bermuda," he said.

SNSA's shares will continue to be traded on the Oslo Bors.

Niels Stolt-Nielsen, CEO of SNSA, said: "The board of directors of SNSA and the company's management are confident that this proposal, if approved, will enable the company to continue to optimise the benefits of its current structure."

SNSA is a provider of integrated transportation solutions for bulk liquid chemicals, edible oils, acids, and other specialty liquids through its three largest business divisions, Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers.

Stolt Sea Farm produces and markets high quality turbot, sole, sturgeon, and caviar. Stolt-Nielsen Gas transports liquefied petroleum gas with its growing fleet of large gas carriers. Stolt-Nielsen SA is listed on the Oslo Stock Exchange.