More shipping companies should follow in Gram Car Carriers’ footsteps, according to Clarksons.
The Oslo-listed shipowner’s main shareholders today accepted an offer from Gianluigi Aponte’s MSC Mediterranean Shipping Company, valuing it at NOK 7.6bn ($700m).
“The transaction is a great one, in our view, and should be set as an example for all the other shipping companies that are trading with large discounts to underlying asset values,” analyst Frode Morkedal said.
The offer price per share is NOK 263.69 in cash.
Including the first-quarter dividend, the total offer price is NOK 272.69 per share, which is equal to a premium of 28% compared with the closing price of NOK 212.50 on Tuesday.
The offer also represents a premium to the share’s all-time high closing price and Clarksons’ NOK 267 per share net asset value assessment.
“Furthermore, considering that the market and asset values are at all-time highs, with a large margin, we think the offer is a great deal for the investors in Gram,” Morkedal said in a note.
GCC’s shares traded around NOK 265 in the afternoon. Car carrier peer Hoegh Autoliners was up 5.7%.
“We usually see that when shipping markets are at these highs, shipping stocks may trade with a significant discount to underlying asset values,” Morkedal added.
Clarksons has updated GCC’s target price to NOK 272.69 and keeps the recommendation at neutral.
“With this transaction, Gram is able to realise the fair value of the company at the peak, or close by it.”
