Pacific Basin to Acquire Four Modern Dry Bulk Vessels

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(Image Courtesy: IHS Fairplay)

On Monday (14 May 2018), Pacific Basin’s subsidiary PB Vessels Holding Limited, has entered into four separate ship contracts for the acquisition of four vessels. The vessels are:

  • one secondhand supramax vessel from Seller A for a consideration of USD 15,500,000;
  • one resale newbuilding supramax vessel from Seller B for a consideration of USD 28,000,000;
  • one secondhand handysize vessel from Seller C for a consideration of USD 20,500,000; and
  • one resale newbuilding handysize vessel from Seller D for a consideration of USD 24,500,000.

The consideration payable to sellers will be satisfied in a combination of a conditional issue to such Sellers (or their nominees) of 170,760,137 New Shares in aggregate at HK$2.036 per Share under the General Mandate amounting to HK$347,667,640 (equivalent to USD 44,290,000) in aggregate; and cash amounting to USD 44,210,000 in aggregate, the company said.

Estimated delivery for the second hand vessels is between Q4 2018 and Q1 2019, and for the resale newbuildings is between mid-2018 and Q4 2018. The issue of the New Shares is to partially satisfy the consideration of the acquisitions from the Sellers, which enhances the Group’s balance sheet strength while acquiring suitable vessels for the Group’s business.

The Dry Bulk market is recovering and the Board considers that these purchase prices are attractive and the vessels will be beneficially employed within the Group’s fleet for the long term after they are delivered, the company added.

Sea News, May 16