MPCC completed its acquisition of 100% of the shares in Songa Container and its fleet of 11 ships for $210.25m on Tuesday. The transaction is a mix of cash and 49,795,250 new shares issued to Songa Container shareholders.
The deal has proved to be well timed for MPCC with containership charter rates continuing to rise to record levels since the planned acquisition was announced in June.
Constantin Baack, Chief Executive Officer of MPC Container Ships commented: “Charter rates have continued to rise since the signing of the agreement, improving the risk-reward dynamics of the transaction even further. This transaction will have an immediate accretive impact on our earnings in a surging container market. Our growing fleet reinforces our industry leading position as an intra-regional trade tonnage provider.
“The visibility of strong cash generation for the years ahead combined with an extremely low residual value risk makes MPCC an attractive and unique investment opportunity during these exciting times in container shipping,” he added.
Arne Blystad, Chairman of Songa Container said: "We are excited to join forces with MPCC. The company is perfectly positioned to generate super profits in the current strong container market and to consolidate this segment further.”
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