Hong Kong-based dry bulk shipping company Pacific Basin has entered into a conditional agreement to acquire four secondhand dry bulk vessels for USD 73.84 million, that would be 33% funded by equity.
The units include two 35,900 dwt Handysizes, built in 2015, that are scheduled for delivery in October-November 2019 and March-April 2020.
The deal is also for two Supramaxes, featuring 61,400 dwt and 57,600 dwt, and built in 2012 and 2015, respectively. These two bulkers are also set to join their new owner in October-November 2019 and March-April 2020.
The three 2015-built ships are currently under long-term time charter to Pacific Basin, with one charter deal expiring in October 2019 and two expiring in 2022. The purchase of these vessels will replace the company’s charter costs “with significantly lower owned vessel cash costs”.
The consideration will take the form of 105,9 million new Pacific Basin shares to be issued to the ships’ sellers amounting to USD 24.37 million in aggregate, and USD 49.47 million to be funded from the group’s cash.
The new shares to be issued will in aggregate represent 2.22% of Pacific Basin’s enlarged issued share capital after the allotment and issue of all these new shares. The issue price of HKD 1.80 per new share issued to the ships’ sellers represents a premium of 5.94% to the average closing price for the last ten trading days.
“Consistent with our previously stated goal of looking opportunistically but cautiously at acquiring good quality secondhand ships, these ship purchases represent another attractive opportunity to grow and renew our fleet with modern, efficient vessels built by large, reputable shipbuilders Shikoku, Tsuneishi and Imabari,” Mats Berglund, CEO of Pacific Basin, said.