Toro Announces Spin‑Off of LPG Carrier Business
Toro Corp (NASDAQ:TORO) reported that its shares rose 4% in after‑hours trading on Wednesday following the announcement of a strategic spin‑off of its LPG carrier business. The new independent entity will be named AI Okto Corp and is intended to be listed on the Nasdaq Capital Market.
AI Okto’s initial balance sheet will comprise two LPG carriers – LPG Dream Arrax and LPG Dream Vermax – together with a cash contribution of $45 million from Toro. No additional assets or liabilities were disclosed.
Toro shareholders will automatically become entitled to AI Okto shares; they are not required to submit any consideration, surrender any Toro common shares, or take any action to receive the new shares. Fractional AI Okto shares will not be issued directly; instead, the distribution agent will aggregate fractional entitlements, sell the resulting shares in the open market, and distribute the net cash proceeds to the entitled shareholders.
Petros Panagiotidis, who serves as Toro’s Chairman and Chief Executive Officer, will be appointed Chairman and Chief Executive Officer of AI Okto. The spin‑off transactions have been approved by Toro’s Board of Directors based on recommendations from a disinterested and independent special committee.
The company stated that the creation of a pure‑play LPG carrier platform is aimed at establishing an AI‑enabled operating model through partnerships with vendors, data‑infrastructure providers, and maritime‑technology firms.
AI Okto has filed a registration statement on Form 20‑F with the U.S. Securities and Exchange Commission. The completion of the spin‑off remains subject to the registration statement being declared effective by the SEC and to the approval of AI Okto’s listing on the Nasdaq Capital Market.