Athens-based container ship owner Danaos Corporation has acquired three second hand vessels through Gemini Shipholdings Corporation, a newly-formed joint venture between the company and its largest stockholder.
Danaos says the company capitalized on depressed asset prices in the resale market to purchase the following boxships:
- the 6,422 TEU NYK Lodestar, built in 2001 at Samsung Heavy Industries, which has already commenced a 2 year time charter with NYK;
- the 5,610 TEU Suez Canal, built in 2002 at Hyundai Heavy Industries; and
- the 5,544 TEU Genoa built in 2002 at Imabari Shipbuilding.
The Suez Canal and the Genoa are on a 7-year bareboat charter to Gemini with a purchase obligation at the end of the charter, and Danaos anticipates charter agreements for the two vessels to be entered into in the near future.
“These acquisitions were made at a discount to the vessels’ present market value and demonstrate our ability to source accretive acquisitions through our strong relationships in the shipping and lending communities,” Dr. John Coustas, Chairman and CEO of Danaos, said.
“We are pleased to announce this new venture, which will allow Danaos to resume its growth strategy as weakness in the containership market presents compelling value. It is important to stress that we are doing this without diluting our shareholders.”
Under the Gemini Shareholders Agreement, Danaos has the right to purchase all of the beneficial interest in Gemini that it does not own for fair market value at any time after December 31, 2018, or earlier if permitted under its credit facilities.
Danaos’ initial 49% ownership interest in Gemini was acquired through an investment of USD 7.35 million.
Image: Port of Hamburg