Clarksons Securities says the revaluation potential for boxship owners such as MPC Container Ships and Global Ship Lease is increasing.
Last Wednesday, Gianluigi Aponte’s MSC Mediterranean Shipping Company offered to buy Oslo-listed Gram Car Carriers for about $700m.
“Overall, this transaction provides an excellent opportunity for Gram shareholders to liquidate their holdings at full value, capitalising on the market’s current peak,” Clarksons said in a note on Monday.
The deal could also lead to a repricing of container ship owners, it added.
“Significant market players paying full net asset value have sparked investor interest in similar firms with large backlogs and deep NAV discounts,” the broker said.
Shares of MPC have risen around 22% after the Gram Car Carrier offer was announced.
The pricing of MPC has increased from 0.51 times net asset value to 0.66 times.
“A key distinction remains between car carriers and containerships. Car carriers are currently in short supply, in contrast with the adequate supply of containerships,” Clarksons said.
“Additionally, the containership sector faces higher counterparty risks compared to the car carrier industry. Yet, disruptions in the Red Sea have sparked a strong market recovery for containerships, reducing these risks.”
According to the investment bank, time charter rates for container ships have increased more than 60%, with rates for a 2,750-teu feeder ship climbing from $12,000 per day to $20,000 per day.
The value of a 10-year-old ship of this type has jumped from $15m to $22m, a 47% increase.
“However, secondhand values are still significantly lower than newbuild parity, making the overall value proposition quite appealing in our opinion,” Clarksons said.
“While full NAV valuations may hinge on similar mergers and acquisitions, the revaluation potential for tonnage providers like [MPC] and Global Ship Lease, which trades at 0.52x NAV, is growing, making them attractive investment opportunities.”
