EuroDry, a Nasdaq-listed shipowner of 10 bulkers, bumped up its fleet by three vessels on Tuesday with the acquisition of ultramaxes from UK-based ship investment company Marine Capital.
The announcement confirms previous reports by brokers and TradeWinds about a deal between the two companies.
The scope of the transaction, however, is a bit smaller than the market initially believed.
Aristides Pittas-led EuroDry confirmed buying three Marine Capital vessels instead of the initially reported four.
The sister ship trio confirmed to be changing hands for $65m in total consists of the 63,200-dwt Giants Causeway and Sadlers Wells (both built 2015) and the one-year younger Galileo (built 2014).
Reports had previously indicated that Marine Capital was selling to EuroDry its entire fleet, which included the 63,200-dwt Cape Cross (built 2014) as well.
Initial information was also not entirely accurate about the way EuroDry is financing the acquisition.
The Nasdaq-listed company was believed to be buying two ships for cash and the other two with the co-financing of Norway’s Ness, Risan & Partners (NRP).
In its official press release sent on Tuesday, however, EuroDry said it is funding the three Chinese-built ships it is buying through its own funds and bank debt.
EuroDry has not been a very active player in the secondhand market as it last bought a vessel in April 2022. The company’s management, however, has recently given strong signals that it was set to expand.
In EuroDry’s last financial earnings on 8 August, chairman and chief executive Aristides Pittas said that the Athens-based firm was looking “for accretive projects and acquisitions to pursue, both on our own and jointly with investment partners”.
Pittas reiterated on Tuesday that “market fundamentals, especially the low orderbook, are very supportive of a healthy market over the next two to three years”.
“While [on the] demand-side geopolitical and economic uncertainties remain, we believe that the risks are tilted to the upside and the present level of the market presents a great opportunity to expand our fleet with high-quality units of known design,” Pittas said.
The Sadlers Well, Galileo and Giants Causeway are sister ships to the 63,500-dwt Alexandros P (built 2017), one of two ultramaxes in EuroDry’s current fleet.
EuroDry will take delivery of its three new vessels in October and November.
