MPC Container Ships closes Songa acquisition
Norway’s containership owner MPC Container Ships ASA has completed its acquisition of compatriot ship owner and operator Songa Container AS.
In June this year, MPC Container Ships inked a share puchase agreement to acquire 100% of the shares in Songa for a total value of $210.25 million on a debt and cash free basis.
As informed, the consideration is paid partly in cash and partly in new shares, and in total 49,795,250 new shares are being issued in relation to the transaction. The selling shareholders of Songa who are receiving consideration shares have entered into customary undertakings with MPCC pursuant to which the consideration shares are subject to lock-up of up to 3 months from completion of the acquisition.
”It is with great pleasure we announce the successful closing of this milestone transaction. Charter rates have continued to rise since the signing of the agreement, improving the risk-reward dynamics of the transaction even further,” Constantin Baack, Chief Executive Officer of MPC Container Ships, commented.
“This transaction will have an immediate accretive impact on our earnings in a surging container market… The visibility of strong cash generation for the years ahead combined with an extremely low residual value risk makes MPCC an attractive and unique investment opportunity during these exciting times in container shipping.”
“We are excited to join forces with MPCC. The company is perfectly positioned to generate super profits in the current strong container market and to consolidate this segment further. The present market parameters constitute one of the most attractive opportunities in container shipping in the last decades,” Arne Blystad, Chairman of Songa Container AS, said.
Songa Container has a fleet of 14 vessels, ranging from 1,000 TEU and up to 4,250 TEU, the majority of which are fitted with exhaust gas cleaning systems (EGCS) to reduce airborne sulphur emissions.