Lloyd Fonds to become shipowning company

The fund manager said its board had approved a new business model that would see it becoming a holding company for a listed shipowning company.

Lloyd Fonds plans to inject 11 single shipowning entities through a non-cash equity offer in which limited partners would receives shares in Lloyd Fonds. Assuming all the single ship companies accept the offer the non-cash equity offering would be valued at EUR162m ($183.8m), this is in line with a valuers report on the 11 ships, which puts the combined value at EUR162.3m.

Documentation offer will be sent to around 18,000 investors in the 11 companies, and they will then vote on it at the end of February.

If the offer is accepted it will create a fleet of six containerships of between 1,100 and 8,500 teu and five tankers, of which four are panamax tankers.

“By pooling the ships owned by such entities within an existing listed company, Lloyd Fonds AG has developed a business model which is to offer investors a viable basis for their investment: six container ships and five tankers from different size classes are to be combined to create a well positioned and diversified fleet,” Lloyd Fonds said.

The aim is to become an internationally active shipowner with a diversified fleet.

“It is high time that investors in single-ship entities receive a viable perspective for their investment,” said Torsten Teichert, ceo of Lloyd Fonds AG. “Most ships are still feeling the strain of the shipping crisis. I am convinced that genuine fleet finance under the roof of a company such as Lloyd Fonds AG offers a far better outlook for the ships than the current single-ship entities.”

The newly realigned Lloyd’s Funds plans to use its stock market listing to acquire news ships in the future.

“Lloyd Fonds AG’s position in the capital market is to be leveraged with the aim of assembling a modern and viable fleet generating a steady cash flow and to establish the share as a value proposition,” Teichert added.