Middle Market Mergers and Acquisitions: A Primer
Over the past few years, we have provided regular analysis of the maritime and offshore industry mergers and acquisitions (M&A) markets. But what goes into those decisions and transactions? This quarter, an overview of the basics of mergers and acquisitions – the players, the process and the terminology – will simplify the language of M&A. In simple terms, there are really two types of buyers in the M&A world: Financial Buyers and Strategic Buyers. A ‘strategic’ is generally a larger company with operations that are similar to those of the ‘target’ company…
AOD Orders 2 Jack-up Rigs at CSSC Huangpu Wenchong
CSSC Huangpu Wenchong Shipbuilding Company has won an order to build a pair of jack-up drilling rigs for Alliance Offshore Drilling (AOD), subsidiary of Hong Kong-listed TSC Group. The two Zentech-designed R-550D rigs are scheduled to be delivered by 2017 and June 2018, respectively. Financial details of the deal were not disclosed. TSC Group established a joint venture with CSSC Huangpu Wenchong Shipyard in June to develop in the offshore EPC market. "The transaction arising from the Contracts will be conducted in the ordinary and usual course of business of the Company.
GoodBulk Acquires up to 13 Capesize Vessels
GoodBulk, an owner and operator of dry bulk vessels announced that it has entered into an agreement to acquire 7 to 13 Capesize dry bulk carriers from entities managed by CarVal Investors. Delivery of the vessels is expected to occur during the 4th Quarter of 2017 and the 1st Quarter of 2018. “We are excited to partner with CarVal Investors in this transaction as we continue to execute upon the Company’s strategy of building an industry leading platform for investment in dry bulk vessels,” commented Chairman and CEO John Michael Radziwill.
Hafnia Tankers in Sale and Leaseback Deal
Hafnia Tankers has successfully completed its first sale and leaseback in the Japanese market through the sale and leaseback of its 2010 built LR1 tanker, MT Hafnia Africa. The Vessel has been sold to a large Japanese private ship owning company with an 8-year bareboat charter back with annual purchase options from year four onwards. The Company has an option to extend the lease to 12 years. The Transaction entailed a sale of the Vessel at market value and a fully levered lease arrangement which gives rise to a positive liquidity effect of approx.
Euroseas to Sell $29 Million in Shares
Euroseas Ltd. has announced that it entered into an agreement to sell 25,000 shares of its Series B Convertible Perpetual Preferred Shares to a fund managed by Tennenbaum Capital Partners, LLC (TCP) and 5,700 shares to Preferred Friends Investment Company Inc, an affiliate of the company, for expected net proceeds of approximately $29 million. The company intends to use the proceeds for the acquisition of vessels and general corporate purposes. The transaction is expected to close by January 29, 2014. RMK Maritime acted as an advisor to the company in the transaction.
Hafnia Tankers Inks Fresh Sale and Leaseback Deal
Denmark-based shipping company Hafnia Tankers has successfully completed a sale and leaseback in the Japanese market through the sale and leaseback of its 2010 built LR1 tanker, MT Hafnia Australia. The Vessel has been sold to a Japanese private ship owning company (the Lessor) with a 12-year bareboat charter back with annual purchase options from year four onwards. The Transaction entailed a sale of the 74,539 dwt ship at market value and a fully levered lease arrangement which gives rise to a positive liquidity effect of approx.