Frode Teigen’s Lighthouse is bringing two profitable shipowning companies and a ship management company running in the black into a merger with Oslo-listed Belships.
A merger plan between Sverre Tidemand’s Belships and privately-owned Lighthouse was agreed yesterday, confirming a union which first emerged this summer.
Financial disclosures released to Belships investors show the Lighthouse ultramax fleet has been running comfortably in the back for the past three years.
At the same time, the company’s supramax operation has been in profit for the past two years.
The merger will create a 16-bulker public vehicle, with an eye on growth and anticipating greater trading liquidity and access to the capital markets.
Lighthouse Shipholding AS is Teigen’s ultramax vehicle, which was set up in 2013 and ordered vessels at Jiangsu Hantong Ship Heavy Industry in Nantong, China.
It will merge the 63,200-dwt Indian Light, Baltic Light and Atlantic Light (all built in 2016) and the Northern Light and Southern Light (both built 2015) into Belships.
According to the disclosures, Lighthouse Shipholding AS banked a profit of $10.7m in 2016 and a further $11.5m in 2017.
Lighthouse Shipholding II AS is the owner of the 50,000-dwt Orient Light and Bering Light (both built 2008), the Pacific Light (built 2007) and the Eastern Light (built 2006). It was launched in 2016 and acquired the ships second-hand.
It recorded a profit of $300,000 in 2016 and $500,000 in 2017, according to details released to investors.
Lighthouse Navigation, a commercial management company based in Bangkok, is also included in the merger. It manages both the Lighthouse ships and chartered in vessels.
The company produced a profit of $3.3m on revenue of $96m in 2017. The previous year, its profit sat at $900,000 on revenue of $34.8m.
“The consolidated fleet will have an increased earnings capacity and provide opportunities to realise synergies through improved cost efficiency,” Belships said in the merger documents.
“The larger fleet will also potentially contribute to improved commercial terms through a stronger negotiation position towards charterers.”
Belships has six vessels trading on long-term deals and an open newbuilding for delivery in 2020.
It booked a profit of $6.34m in 2017, overturning a loss of $14.59m the previous year.
Teigen’s investment vehicle Kontrari will hold a near 69% stake in the merged company, with Tidemand’s Sonata left with just below 10%.
