Tailwind Financial Inc., a Canadian acquisition company, said Wednesday it intends to buy 20 vessels, including nine still in development, from Greek shipping operator GrandUnion Inc. Toronto-based Tailwind said it signed a letter of intent giving it a period of exclusive negotiations. Closing the deal hinges on several factors including financing for ships and approval by Tailwind shareholders.
Financial terms were not discussed. Tailwind said details would be disclosed after a definitive agreement is reached.
Tailwind said the 11 existing vessels in the deal are valued at more than $600 million and will form a dry bulk shipping company generating earnings before interest, taxes, depreciation and amortization of more than $113 million for 2009.
The nine vessels in development are scheduled for delivery in 2010 and 2010.
Nicholas Fistes, a GrandUnion principal and chairman, will be chairman and chief executive of the new shipping outfit, and GrandUnion CEO Michael Zolotas will become chief operating officer.
U.S.-traded shares of Tailwind rose 5 cents to $7.97 in afternoon trading.
Financial terms were not discussed. Tailwind said details would be disclosed after a definitive agreement is reached.
Tailwind said the 11 existing vessels in the deal are valued at more than $600 million and will form a dry bulk shipping company generating earnings before interest, taxes, depreciation and amortization of more than $113 million for 2009.
The nine vessels in development are scheduled for delivery in 2010 and 2010.
Nicholas Fistes, a GrandUnion principal and chairman, will be chairman and chief executive of the new shipping outfit, and GrandUnion CEO Michael Zolotas will become chief operating officer.
U.S.-traded shares of Tailwind rose 5 cents to $7.97 in afternoon trading.