Oslo-listed MPC Container Ships (MPCC) is expanding its capacity to buy back shares, as well as seeking approval for a new dividend programme.
The German owner of feeder boxships has called an extraordinary general meeting in Oslo on 28 January to push through its agenda.
Directors want authorisation to buy back shares in Oslo worth up to NOK 44.37m ($5.13m), about 10% of its share capital.
The price cannot be more than NOK 200 each, which should not be a problem with the shares closing up 3.6% at NOK 27.25 on Wednesday.
The buyback authority will last until 30 June 2023 if shareholders approve.
The company told TradeWinds the scheme will be a renewal of current authorisation to buy 39m shares.
In August, MPCC issued new shares in connection with the acquisition of Songa Container.
According to Norwegian law, a listed company can hold up to 10% in treasury shares, giving it the scope to buy 44m shares.
To help make room for the new purchases, MPCC is cancelling 351,000 treasury shares.
And it is moving forward with its new policy of paying out 75% of net earnings as regular dividends from the first quarter, "in support of its objective of maximising returns to shareholders".
Ship sales and bank finance
It said it could also hand back cash from one-off events such as ship sales.
In October, MPCC said it was entering a "new era" of returning cash to shareholders after agreeing to sell six ships and fix new finance.
It sold six unnamed vessels of between 1,000 teu and 1,500 teu for $135m in total.
The company also arranged a new bank facility worth $180m with Hamburg Commercial Bank at Libor plus 3.35%, which it called an attractive rate.
The five-year package comprises a $130m term loan and a revolving credit facility of $50m.
The bank and sales cash will go towards renewing acquisition loans from Norwegian lender DNB, as well as paying off a $204m bond in full.
Fearnley Securities said in October that the bond had been "keeping a lid" on dividends.
The new payout plan would amount to $0.55 for 2022 and about $0.60 for 2023, around half of the current market cap combined over the two years, the investment bank added.
But in November, MPCC upped its revenue forecast to $360m to 365m and expected Ebitda to between $305m and $315m.
That includes an estimated gain of $99m related to nine container ships sold since July.
