Harry Vafias-backed Imperial Petroleum has sold an aframax tanker to affiliate C3is less than a month after spinning it off as a “pure play” bulker owner.
Nasdaq-listed C3is couched the $43m purchase of the 116,000-dwt aframax tanker Stealth Berana (built 2010) as a way to help boost the new organisation’s net asset value (NAV).
“We believe it will significantly enhance the company’s cash flow and earnings and assist in addressing our low price to NAV valuation,” C3is chief financial officer Diamantis Andriotis said.
C3is has already paid Imperial Petroleum 10% of the purchase price and is poised to pay the remainder one year after delivery, which took place last Friday.
“We expect to finance the remaining acquisition consideration with cash on hand, cash flow from operations and possibly the incurrence of senior secured bank debt within the 12-month period following the vessel’s delivery to us, as agreed with the seller,” Andriotis said.
The Stealth Berana, which was built at South Korea’s Samsung Heavy Industries and has a scrubber unit, is changing hands at a nearly 14% discount to an estimate from VesselsValue, which calculates that the ship could fetch $49.9m in an open-market transaction.
Imperial Petroleum, itself a Nasdaq-listed spin-off from Vafias-led LPG carrier owner StealthGas, announced in April that it planned to spin off its two bulkers with the creation of C3is.
“The board of directors of the company believes that the creation of a ‘pure play’ dry bulk shipping company will provide significant benefits to both companies and their shareholders,” Imperial Petroleum said at the time. “The transaction will enable C3is Inc to initially focus on the dry bulk sector, while Imperial Petroleum Inc gradually focuses on the tanker sector.”
Imperial Petroleum said the spin-off would allow both companies to independently attract new shareholders, who could adjust their holdings in the sector they would like to invest in.
That does not appear to be how it worked out, if the share price is any indication.
Shares in C3is, which had investment bank Maxim Group as its placement agent, began trading in New York on 22 June under the ticker symbol CISS. The stock plunged 22.6% to $3.70 on that day.
On 30 June, C3is issued new shares at $1.05 apiece in a $5m fundraiser, and the stock has since fallen to $0.99.
Imperial Petroleum and C3is listed the phone number for Athens-based Stealth Maritime — the Vafias family-controlled company that manages their fleet and provides other services — as their contact number.
No one authorised to speak was available for comment for this story after Athens business hours.
