German shipowning company Oskar Wehr has set up one of the biggest Norwegian KS (limited partnership) companies in years.
Clarksons Platou Project Finance has arranged the purchase of eight handysize and two supramax bulkers in a $37m equity deal. Oskar Wehr will have a 25% stake in the new company called Selmer Bulk, while Nicolai E Lorentzen's Lorentzen Skibs will get 10%.
According to the prospectus for the offering, the purchase price is about 10% to 15% below current broker assessment of market values.
Thomas Wehr, the chief executive of Oskar Wehr, said that the main reason for the deal was for the company to "to step into the Norwegian project market".
He said that his company will hold an equity share in the project and retain technical management of the vessels.
Wehr said Oskar Wehr wants to grow its business "by stepping into the Norwegian market and see this as a first step".
"Furthermore we are prepared to invest more equity into future projects to grow our business and the fleet under technical management," he said.
The eight handysizes are on average 10.5 years old, and the supramaxes have an average age of 13.5 years.
The ships operate on short-term contracts and are thus able to benefit fully from the current strong freight market. About 80% of their available vessel days are open, excluding dry docking in the second and third quarters of this year.
According to the prospectus for Selmer Bulk, the rate for a one-year charter of a handysize is now $17,000 to $19,000 per day, and it stands at $20,000 to $22,500 per day for supramaxes.
