OSLO, Norway-headquartered containership operator MPC Container Ships is acquiring Arne Blystad led Songa Container and its fleet of 11 vessels in a US$210.25 million deal
The deal sees MPC Container Ships (MPCC) acquiring a fleet of 11 containership with an average size of 2,250 YEU and age of 11.9 years. Nine of the vessels are fitted with scrubbers and three are ice-class and suited to Baltic Sea trading. Three other vessels in Songa's fleet are currently in the process of being sold, according to media reports.
Constantin Baack, CEO of MPCC commented: "This transaction is backed by our strong belief in the sustainable container market fundamentals and the desire to take advantage of the significant lag between asset values and rates
The deal is valued at $210.25 million on a debt and cash free basis, with $115 million to be settled in cash and the remaining portion will be settled through issuing approximately 48-50 million new shares in MPCC, bringing in new shareholders.
"This is a milestone transaction for MPCC and we are particularly excited about the cash flow prospects of the combined fleet which will come to the benefit of our existing and new shareholders in the coming years," said Mr Baack.
Arne Blystad, chairman of Songa Container, commented: "The container market continues to be strong and MPCC has become a compelling reflection of the underlying container market fundamentals.
"We are happy to contribute to the consolidation in the container market and build a leader in the regional container segment. Prior to this transaction we were already a shareholder in MPCC and we will become a more significant one post this transaction."
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