Peter Weernink-led Singapore Marine has acquired SwissMarine to forge a new dry bulk giant with around 150 post-panamax, baby-cape and capesize vessels.
The deal signed on Friday will see around 125 bulkers operated by Geneva-based SwissMarine combined with around 30 large bulkers taken from the market in a few months by Singapore Marine.
Weernink, who is chairman and leading shareholder of Singapore Marine, stepped down as chief executive of SwissMarine in April 2018.
He told TradeWinds he had always planned to buy back SwissMarine, and has been plotting a comeback together with high-profile shipping investors.
That meant acquiring the stakes from his co-shareholders in SwissMarine including Glencore, steel trader MUR and shipowner Victor Restis.
The process had taken longer than expected, but work would begin on immediately building up the fleet, he said.
“For me now, there’s going to be a rebuilding and expansion plan,” said Weernink.
“We have a group of committed new investors who would like to build a much bigger and greater business.”
A founder returns
Weernink, a Cargill-trained Dutchman, founded SwissMarine in 2001 and built it up into one of a handful of operators that dominated the capesize dry cargo market.
He stepped down as chief executive in April 2018 when shareholders of SwissMarine led by Glencore were unable to commit to growth of the shipping business.
“In that set up a year ago, we couldn’t take the business forward, and grow it,” said Weernink.
“And I believe that with the current group of investors there’s a desire to do so.”
For me now, there’s going to be a rebuilding and expansion plan. We have a group of committed new investors who would like to build a much bigger and greater business
Peter Weernink
The financial details of the transaction have not been disclosed.
But Weernink, who retained a 10% shareholding in SwissMarine, said the price was agreed a few months ago.
Weernink is the major shareholder in Singapore Marine with a 35% stake, followed by Golden Ocean which is known to have at least at 15% interest.
Singapore Marine has made a low-profile entrance into the bulker market since its formation in March.
Many of the deals appear to have been off-market with just three of its fixtures reported by the Baltic Exchange.
These including the 170,578-dwt New Leonidas (built 2003), which was taken in June for 11 to 13 months on an index-linked contract.
But Singapore Marine, which is run by Weernink and his former SwissMarine colleague Deyan Mihov as managing director, already operates 11 capes and around 20 baby cape and post-panamax bulkers, according to its website.
SwissMarine remains one of the larger players in the capesize segment which account for around two-thirds of its 125 ships.
Weernink expected that SwissMarine and Singapore Marine would operate under their own names for the immediate future.
The acquisition of SwissMarine is made possible after Singapore Marine secured $105m in investment from an all-star cast of shipping investors.
More investment from Golden Ocean
John Fredriksen's Golden Ocean said on Monday it had agreed to make a further investment in Singapore Marine in connection with the Swiss Marine deal.
"Including new commitments from Golden Ocean of $9.5m in equity and $0.7m in the form of a shareholder loan, Singapore Marine has raised a $44m in addition to the $105m in available capital raised in April 2019," it said.
Golden Ocean Group has in total invested $19.5m in equity and $10.7m in shareholder loans, which as of today are fully drawn.
"We are pleased to assist Singapore Marine accelerate its growth plan and create scale through our most recent investment," said Thomas Semino, chief commercial officer of Golden Ocean and a director of Singapore Marine.
"While Singapore Marine will operate independently from Golden Ocean and our participation in the company is primarily financial, we expect to derive additional value through this relationship. Golden Ocean's significant commercial capabilities and the depth of its market intelligence will be further enhanced by this new relationship."
Other names backing Singapore Marine include Theodore Veniamis’ Golden Union, the Martinos family’s Thenamaris, the Saracakis family of Ionic Shipping, and John Michael Radziwill.
Former Glencore man Angus Paul and Will Snellings of Marianas Fund Management are also named investors.
Weernink said the management team was independent and was no conflict of interest between his dry cargo venture and that of its shareholders.
