SITC acquires dry bulk assets

The acquisition deal, priced at $50.61m, will see SITCInternational absorb five dry bulk carriers with sizes ranging from 58,107-76,000 dwt, built between 2010 to 2013, while one is expected to be completed by the end of this year.

The target companies involved are Huangshan Shipping, Taishan Shipping, Huashan Shipping, Lushan Shipping and Zhoushan Shipping.

“The company does not currently have any dry bulk operation. The acquisition will enable the company to expand its self-owned fleet to dry bulk vessels during the recession of dry bulk market and it also expands the scope of the company to dry bulk services (...),” SITC said in a statement.

“The dry bulk vessels of the target companies are currently under charter with independent customers. The company would assess the then dry bulk market condition to decide whether to continue the charter arrangement or to commence the group's own dry bulk operation,” it added.

Hong Kong-listed SITC International owns 62.5% of SITC Shipowning, which in turns owns 100% of the issued share capital of each of the target companies.