Euroseas, Poseidon Eye Merger of Container Fleets
Greek shipowner Euroseas has signed a non-binding letter of intent with Poseidon Container Holdings Group, an owner and operator container carriers, to consider a possible combination of their respective containership fleets.
Poseidon owns and operates a fleet of sixteen container carriers including four feeder containerships, two Panamax, and four Post-Panamax containerships as well as six Post-Panamaxes.
As disclosed, the possible combination may include a spinoff of Euroseas’ container assets into a standalone company or take the form of a different structure.
Euronav expects that any combination with Poseidon would be done on a net asset value (NAV) to NAV basis. NAV is typically calculated as the difference between the market value of a company’s assets net of the market value of its liabilities.
“Euroseas’ strategy is to use its operating expertise and public company status to provide a platform of consolidation for similar assets in the drybulk and containership sectors. This strategy may be implemented by separating Euroseas’ drybulk and containership fleets into two public companies if the Board of Directors determines that such a split would benefit Euroseas’ shareholders, particularly if it may also facilitate Euroseas’ consolidation strategy,” the company said.
Euroseas stressed that the discussions are “at an early stage, that the letter of intent is non-binding, and that there can be no assurance that an agreement will be reached with Poseidon or any other party.”
Separately, Euroseas said that it took delivery of M/V EM Athens, a feeder containership of 2,506 TEU built in 2000 that it acquired last month from Euromar, its wholly-owned subsidiary. M/V EM Athens was acquired along with EM Oinousses, a feeder-size containership also of 2,506 TEU built in 2000.
Furthermore, the shipowner has exercised its option to purchase from Euromar two additional containerships, the M/V EM Corfu, of 2,556 TEU built in 2001, and the M/V Akinada Bridge, a Post-Panamax size containership of 5,600 TEU built in 2001.
Euroseas said the latest acquisitions would be financed via a combination of debt and equity. The M/V EM Oinousses, M/V EM Corfu and M/V Akinada Bridge are expected to be delivered to the company within 2017.
Euroseas has a fleet of 21 vessels in the water. With the addition of the Kamsarmax newbuilding yet to be delivered, it will have seven drybulk carriers with a total cargo capacity of 499,753 dwt, and fifteen containerships with a total cargo capacity of 34,044 TEU.