Gram Car Carriers chief executive Georg Whist is looking forward to going private again if the $700m offer of Gianluigi Aponte’s MSC Mediterranean Shipping Company goes through.
“We went public, now we go private again. The commitment of a wealthy shipping-savvy single owner is extremely interesting,” Whist said at the first-quarter earnings presentation.
Geneva-based MSC has offered to buy Oslo-listed GCC for NOK 263.69 ($24.05) per share.
The offer price plus the first-quarter dividend will result in total cash proceeds to shareholders of NOK 272.69 per share.
“The buyer here is very clear,” Whist said.
“He is not just buying ships. He is buying a platform, all the DNA, the people at Gram Car Carriers.
“He is going to continue with the name, the people and everything. So for our customers, they will not feel the difference.”
GCC’s shares rose as much as 26% to NOK 268 in Oslo.
Whist revealed that MSC approached GCC, which led to negotiations between the companies.
“I think they liked what we have created. They liked the stability of the business. They have probably seen that we deliver consistent dividends,” he said.
The CEO described the offer price as fair, considering the 28% premium to yesterday’s closing price of NOK 212.50 and the recommendations from equity research analysts.
“If you balance all this, we think it is a fair offer. That is also why you have such a high pre-commitment rate from existing shareholders and management,” he said.
The main shareholders of GCC representing 55.85% of issued and outstanding share capital have undertaken to accept Aponte’s offer.
The acquisition could be the beginning of a reshaping of the car carrier segment.
The lack of tonnage has led automobile exporters to use container ships and other vessels for transport.
“Looking at it, it seems there is something there, but it is early days for us. We are not privileged to the inner thoughts of the MSC Group,” Whist said.
He said GCC’s strategy with long contracts remains for the time being.
“Of course, if this offer goes through, then we will sit down with the new shareholder and have a strategy session and hammer out the new strategy for the company,” he added.
“Whether that means we stay as is or he wants to change, go a bit shorter, I really don’t know. And we shouldn’t speculate.”
Whist also said in the call that the pure car/truck carrier market “should remain strong in the coming years”.
“We see attractive fundamentals and we have successfully captured the strong market through fixtures and value-adding vessel transactions,” he said.
“We have good visibility on growing earnings and cash generation. I think that is what is reflected in today’s offer.”
