Oslo-listed MPC Container Ships (MPCC) has achieved a huge price for two veteran vessels bought in a bank sale six years ago.
The 2,824-teu sub-panamaxes Cimbria (built 2002) and Cardonia (built 2003) are being sold for $42.5m in total.
They are the last ships in the MPCC fleet to be owned with an unnamed joint venture partner.
Both vessels are currently on time-charter contracts at $35,000 per day to Israel’s Zim, expiring at the earliest in July 2025 for the Cardonia and in October 2025 for the Cimbria, adding to their value.
The duo was acquired from the fleet of Ahrenkiel Steamship in 2017 for $6.4m each in a bank sale following insolvency proceedings. Ahrenkiel was owned by MPCC backer MPC Capital.
VesselsValue assesses the ships as worth only $11.8m and $12.74m respectively.
The joint venture bought eight units in total for $58m combined.
They have generated $114m in Ebitda and have now all been sold for $186m, “resulting in an attractive multiple on invested capital”, MPCC said.
Chief executive Constantin Baack added: “These divestments conclude a successful investment for MPCC, and we would like to extend our sincere appreciation to our joint venture partner for their excellent collaboration, which was instrumental in achieving this highly positive outcome.”
He said the deals validated the strategy of investing through market cycles, identifying attractive opportunities, implementing effective management and exiting at favourable prices.
Use of proceeds yet to be decided
“We remain committed to continually optimising our fleet while capitalising on market opportunities to deliver attractive returns and sustainable long-term shareholder value,” the CEO said.
The vessels are scheduled for handover by the end of July, with the use of the proceeds yet to be determined by the board.
In June, MPCC struck a deal to buy five modern feeder vessels from Lomar Shipping, while selling one of its own ships and taking early redelivery of another.
The 4,256-teu AS Emma (built 2010) went for $22m. Analysts estimated proceeds at $15m.
The ship will continue under its current time charter contract with MSC Mediterranean Shipping Company at $20,000 per day until handover in November.
MPCC also renegotiated the early redelivery of the 3,586-teu AS Nadia (built 2007), together with cash compensation from Pasha Hawaii.
The vessel is also on charter to MSC at a rate of $20,000 per day.
