Belships has reported a stable third quarter profit on a day it secured approval for a merger with Frode Teigen’s Lighthouse.
Oslo-listed Belships booked a profit of $600,000 in the three months to the end of September, against the $900,000 recorded in the previous quarter.
The deal with Lighthouse to create a 16-vessel dry cargo company “is expected to be approved” by shareholders at an extraordinary general meeting today, Belships said in its quarterly report.
And so it proved, with Belships subsequently announcing the deal was now expected to close in the second half December.
Belships believes the the transaction will enhance its earnings potential and position the company for further growth.
While Belships has time charter cover on all its trading ships, the Lighthouse vessels are exposed to the spot market.
Completion of the deal will close an eventful few months for Belships. It has been stock listed since the 1930s but has been one of the more low profile public dry cargo shipping companies internationally during the past few years.
In February, major Belships shareholder Sverre Tidemand hired ABG Sundal Collier to explore options for his stake in the company.
This prompted a takeover offer from investment vehicles backed by Caroline Tidemand and Kristin Tidemand Eckhoff, the daughters of his brother, Otto.
A deal between Belships and Lighthouse emerged this July, after Tidemand rejected the offer from two of his nieces.
This led to claims from Kristin Tidemand Eckhoff the transaction represents a “significant shift” from Belships’ stated strategy.
A protest was logged to the Oslo Stock Exchange in September. However, the Oslo Stock Exchange ruled the merger would not trigger a mandatory offer for all shares by investor and shipowner Teigen.
This article has been updated since first publication to reflect the results of a shareholder vote on the transaction.
