Sverre Tidemand's Belships is continuing to work on a merger with Frode Teigen’s Lighthouse Shipholding at a time it expects the improvements in the dry cargo market to roll on.
Oslo-listed Belships revealed plans to combine with Lighthouse this summer after opting against a takeover offer from investment vehicles backed by Caroline Tidemand and Kristin Tidemand Eckhoff, the daughters of Tidemand’s brother, Otto.
In its second quarter report Belships said a process agreement governing the necessary steps in order to complete the transaction was in place.
A due diligence process, regulatory and third-party approval and the negotiating of a merger plan will now take place.
“The board of directors believes the transaction will be in the best interest of all the shareholders and the company,” it said.
A deal with Teigen will grow the Belships fleet to 16 vessels, adding flexibility and the opportunity to expand its charter portfolio, the report explained.
Belships has three bulkers on time charter to Canpotex and a further trio with Cargill, two of which will come open by January 2019.
“The company is well positioned for a dry bulk market that we believe will be strengthening in 2018-19,” Belships said.
For the second quarter it booked a profit of $877,000, with operating profit of $2.14m.
