Sverre Tidemand’s Belships has confirmed plans to merge with Frode Teigen’s Lighthouse to create a 16-vessel dry cargo company with ambitions for further growth.
A merger plan for what has been a controversial deal was signed today following completion of a mutual due diligence process and final negotiations, Belships has confirmed.
In a statement to investors, Belships said it would take on four supramax and five ultramax bulkers and a controlling stake in Lighthouse Navigation, a Bangkok-based management company with annual turnover of $96m.
While all six trading vessels in the Belships fleet were locked into period contracts, all of the Lighthouse vessels are trading spot. A single Belships newbuilding for delivery in 2020 is also open.
Belships said in a presentation to investors the consolidation of matching fleets significantly strengthens its position within the supramax and ultramax segments.
It also noted increased earnings potential, operational synergies and an improved commercial negotiation position following the combination.
The deal places an equity value of $37.66m on Belships, equal to NOK 6.62 per share, it said, noting the merged company had ambitious sponsors targeting further expansion.
Today's literature stresses the deal will increase Belships' free float and potentially improve liquidity in the stock, delivering better access to the capital markets.
Lighthouse investors will receive 127,765,993 shares in Belships. It is buying NOK 100m worth of shares from Tideman as part of the deal.
In February, major Belships shareholder 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.
