Handysize specialist Pacific Basin Shipping is to raise up to HK$761.8m ($97.7m) from a share placement that will boost its war chest to fund future acquisitions, including ships and companies.
The Hong Kong-listed firm said it had inked an agreement to place 174.7m shares at HK$4.36 each with more than six individual, corporate or institutional investors. The placement is being handled by UBS.
The price is a discount of 5.2% to the stock’s closing price of HK$4.60 on Tuesday, while the net placing price will be HK$4.30 per share.
The placement represents 10% of the firm’s issued share capital and 9.1% of its enlarged share capital once the deal is completed. The shares are expected to be placed on or around May 20 and no later than June 3.
Commenting on the move, company secretary Andrew Broomhead said: “We expect the difficult shipping market to present opportunities to the company and are therefore expanding our capital with a view to purchasing assets - mainly dry bulk vessels or companies - at attractive prices at the right time."
It has also emerged that Canadian Forest Navigation, which owns Montreal-based bulker operator Canfornav with an operating fleet of about 30 bulkers vessels ranging between 15,000 dwt and 40,000 dwt in size, has a 10.1% stake in Pacific Basin Shipping. This will be reduced to 9.2% after completion of the placement.
Pacific Basin Shipping’s second-largest shareholder is JP Morgan Chase, with a 9.5% stake.
Mr Broomhead said Pacific Basin currently has vessel capital commitments of $363m to acquire four handysize, one post-panamax, five tugs and four roll-on roll-off newbuildings, as well as non-vessel capital commitments of $16m.
“The company also has options to purchase another two roll-on roll-off newbuildings, which if exercised, will result in additional capital expenditure of $134m.”
The Hong Kong-listed firm said it had inked an agreement to place 174.7m shares at HK$4.36 each with more than six individual, corporate or institutional investors. The placement is being handled by UBS.
The price is a discount of 5.2% to the stock’s closing price of HK$4.60 on Tuesday, while the net placing price will be HK$4.30 per share.
The placement represents 10% of the firm’s issued share capital and 9.1% of its enlarged share capital once the deal is completed. The shares are expected to be placed on or around May 20 and no later than June 3.
Commenting on the move, company secretary Andrew Broomhead said: “We expect the difficult shipping market to present opportunities to the company and are therefore expanding our capital with a view to purchasing assets - mainly dry bulk vessels or companies - at attractive prices at the right time."
It has also emerged that Canadian Forest Navigation, which owns Montreal-based bulker operator Canfornav with an operating fleet of about 30 bulkers vessels ranging between 15,000 dwt and 40,000 dwt in size, has a 10.1% stake in Pacific Basin Shipping. This will be reduced to 9.2% after completion of the placement.
Pacific Basin Shipping’s second-largest shareholder is JP Morgan Chase, with a 9.5% stake.
Mr Broomhead said Pacific Basin currently has vessel capital commitments of $363m to acquire four handysize, one post-panamax, five tugs and four roll-on roll-off newbuildings, as well as non-vessel capital commitments of $16m.
“The company also has options to purchase another two roll-on roll-off newbuildings, which if exercised, will result in additional capital expenditure of $134m.”