Nova Marine Holdings is making an unusual bid to enter the livestock transportation sector.
The Romeo-family run company has bid $25.2m to acquire the 12,892-gt livestock carrier Ocean Swagman (built 2010).
The vessel, which has a capacity of 7,000 cattle or 26,000 sheep, is being sold by Australian-listed livestock carrier group Wellard.
The offer is $3.2m higher than a previous bid for the Ocean Swagman presented by Wellard’s minority shareholder Heytesbury Holdings.
Wellard, which is based in Fremantle in Western Australia, is selling the Ocean Swagman as part of a restructuring operation to reduce debts and improve financial and operating flexibility.
In July it said it would book a loss of around $7.6m on the sale of the Ocean Swagman to Heytesbury.
Just two years ago, Wellard sold the sister ship Ocean Outback (built 2010) for $26m.
Nova Marine, a joint venture between the Romeo family and steel trader Duferco, is best know for running a fleet of minibulkers.
Its bid for the livestock vessel comes two months after Wellard parted ways with its long-term boss and chief executive Mauro Balzarini, who formerly ran the Brescia-based shipping operation Siba Ships.
The transaction remains subject to approval of the board of the Lugano-managed Nova, which could lead to delivery of the vessel schedule for late November.
Unlike the prospective deal with Heytesbury, there is no charter or lease-back on the Nova transaction.
Wellard’s executive chairman, John Klepec, said last month that the vessel sale would reduce Wellard’s debt of $85m.
A total of $6m will be used to settle debts with German financier Nord/LB, while another $10m will be paid to convertible noteholders.
Ocean Swagman is one of four livestock carriers in the fleet of the Fremantle-based company built between 1994 and 2016, including the Ocean Drover, Ocean Shearer, and Ocean Ute.
Wellard, one of Australian biggest live export businesses, has struggled since being floated in 2015.
But the sale should allow Wellard to renew a standstill agreement with bondholders, who are still owed $5.5m.
“Wellard is continuing to negotiate a standstill agreement with its noteholder which reflect and support the sale of the Ocean Swagman to either Nova or Heytesbury,” the company said.
