Poseidon Acquisition Corp has significantly increased its bid for Atlas Corp, the parent company of container leasing giant Seaspan Corp.

The consortium has increased its bid to acquire outstanding shares of the New York-listed company to $15.5 per share.

That is around 7% higher than the offer of $14.45 per share made on 4 August.

Poseidon submitted the revised offer on Monday in a letter to the special committee of independent investors that Atlas has formed to evaluate the bid.

“It is our hope that in light of this significant increase in value, the Special Committee will conclude that this transaction represents full, fair and certain value and is in the best interest of Atlas shareholders,” the consortium said.

“If the Special Committee concludes otherwise, we will withdraw our proposal.”

Bleaker outlook

The improved offer has been made amid a worsening economic outlook and increased the cost of capital, Atlas chairman David Sokol wrote.

Container ship charter rates had declined in the past seven weeks and there was an increasing risk of renegotiations or cancellations with container ship lessors, he said.

“As the Special Committee and its advisors consider our revised proposal, we request that they do so in the context of the continued pressure on the global macroeconomy, financial markets and Atlas’ operating environment,” it said.

Poseidon has been formed by Atlas shareholders Fairfax Financial Holdings, the Washington family, and Atlas chairman Sokol, who together already own more than 50% of the company’s outstanding shares.

Ocean Network Express, the Singapore-based container ship operation of Japan’s Mitsui OSK Lines, NYK Lines and K Line, is also part of the consortium.

The partners have made the improved offer as stocks of most other listed tonnage providers have tumbled.

Shares in other New York-listed tonnage providers, such as Danaos Corp and Global Ship Lease, are down by around one-fifth in recent weeks on recession fears, according to Fearnley Securities.

However, the analyst noted that Atlas’ majority owners had proven their willingness and ability to support the company.

Fairfax alone has invested $1.1bn in Seaspan since 2018, including $200m in April this year, it said.