MPC Container Ships is acquiring Songa Container and its fleet of 11 vessels in a $210.25m deal.
The deal sees MPC Container Ships (MPCC) acquiring a fleet of 11 containership with an average size of 2,250 teu 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 – the Songa Haydn, the City of Hong Kong, and FS Ipanema.
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 $210.25m on a debt and cash-free basis, with $115m to be settled in cash and the remaining portion will be settled through issuing approximately 48-50m new shares in MPCC, bringing in new shareholders.
“We are pleased to welcome renowned shareholders like Arne Blystad, Canomaro Shipping, and Klaveness Marine to MPCC,” said Baack.
Arne Blystad, Chairman of Songa 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.”
The Songa fleet has an estimated EBITDA backlog of $22.5m with an average charter length of about nine months.
Following the transaction MPCC will have a fleet of 75 ships and a total capacity of 158,000 teu.
Source: Seatrade Maritime