Taylor Maritime Investments has lined up deals to buy five bulkers from Japanese and German shipowners ahead of a $250m London initial public offering planned for 27 May.
The purchases are part of Taylor Maritime chief executive Edward Buttery’s plan to spin off Taylor Maritime Investments (TMI) to acquire a "seed" fleet of modern, geared handysizes and supramaxes.
In its recently released IPO prospectus, TMI said it had agreed to conditionally acquire a portfolio of 23 handysize and supramax bulkers, 17 of which were already under the commercial management of Taylor Maritime.
TMI said that the remaining six vessels would be sourced, mostly directly, from vendors “well known” to Taylor Maritime and its executive team.
“These vessels, which are of well-known designs and build yards, will be inspected by third-party service providers prior to acquisition,” the company said.
Brokers this week reported that deals with Japanese and German shipowners for at least five secondhand vessels — two supramaxes and five handysizes — have been lined up.
The larger of the two supramaxes acquired is Tokyo Century Corp’s 58,677-dwt Pacific Hero (built 2012). The Kawasaki Heavy Industries-built vessel was reported sold for $18m.
The other supramax that will join the TMI fleet is IMECS’s 55,596-dwt Indigo Traveller (built 2011), which brokers said has been sold for $15.8m. The ship was built by Japan's Mitsui E&S Group.
TMI has tapped Reederei Nord for two Zhejiang Ouhua Shipbuilding-constructed handysize bulkers. Brokers said the company bought the 37,985-dwt Nordrubicon for $18.28m, and the 37,976-dwt Nordcolorado (both built 2016) for $18m.
Rounding up the quintet is a Minaminippon Shipbuilding-constructed handysize bulker from Japan's Duon Kisen. TMI bought the 38,468-dwt Basic Rainbow (built 2011) for $14.3m, brokers said.
Varying purchase prices
Buttery said he was unable to comment on any vessel acquisitions so close to the IPO.
However, TradeWinds was able to match the vessels to those listed in TMI’s prospectus based on the relevant details provided, and the listed purchase prices.
In the prospectus, TMI pointed out that the listed price was the one for the acquisition of the special purpose vehicle (SPV) that held the vessel and could vary from the value of the ship itself as it would take account of any assets and liabilities, including the assumption of any debt.
TMI, which was formed in Guernsey in March, has identified a pipeline of potential future acquisitions worth $500m to expand the fleet.
The company is aiming to sell 250m new shares at $1 each on the London Stock Exchange in the first big shipping IPO there since Tufton Oceanic Assets in 2017.
Offers for subscription are scheduled to close on 21 May, with the initial admission and dealings in ordinary shares on the London Stock Exchange’s main market starting on 27 May.
Jefferies International is acting as sole global coordinator, sponsor and sole bookrunner.
Buttery told TradeWinds in April that "very well-known" shipping families were either taking cash for ships or writing cheques for shares in the IPO, but there would be no single controlling shareholder.
