Mediterranean Shipping Co (MSC) is bidding to take over Brazilian shipowner and terminal operator Log-In Logistica Intermodal.
The Swiss liner giant has submitted an offer to buy up to 67% of the shares in a deal that values the Rio de Janeiro-based company at about $500m.
In a statement to the Sao Paulo Stock Exchange, Log-In said it had “accepted the conditions of the tender offer” presented to it by MSC.
A tender will be launched by SAS Shipping Agencies Services, a wholly-owned Luxembourg subsidiary of MSC.
A successful bid would mark a further consolidation in the Brazilian cabotage trades but is dependent upon approval from Brazilian antitrust authority CADE.
Share price flying
MSC is proposing to acquire up to 67% of Log-In’s stock at a price of BRL 25 ($4.68) per share.
Details were revealed in a letter dated 15 September, since when Log-In’s share price has rocketed from BRL 15 to over BRL 21.
MSC explained that “the existing synergy” between the activities of the two companies “would significantly increase the company’s financial development”.
It added that the transaction would “positively contribute to the capabilities and business potential”.
Log-In owns a fleet of seven containerships ranging from 1,674 teu through to 2,758 teu.
VesselsValue estimates the ships to be worth $321m.
That includes the 2,554-teu Log-In Discovery (ex-Baleares, built 2014), which Log-In purchased in February this year for just $20m.
Six months later, the same vessel is estimated to have more than doubled in value and is worth $49m, according to VesselsValue
Record profits
The offer is made at a time when the Brazilian operator is making unprecedented profits.
Net operating revenues rose 50% in the second quarter of the year to BRL 353m, up from BRL 234m in the same period last year.
The company attributed that to higher volumes transported in the feeder segment due to higher imports and exports in Brazil.
Cabotage volumes also rose 20% over the period due to a revival of economic activity after the pandemic.
Log-In ranks 47 in the Alphaliner carrier league.
The company operates its fleet mostly on Brazilian coastal services, as well as to Argentina and Uruguay.
Part of the company’s network is operated jointly with Mercosul Line, the Brazilian liner shipping subsidiary of CMA CGM.
