• 2021 June 23 16:18

    MPC Container Ships ASA signs agreement to acquire Songa Container AS and operational update

    MPC Container Ships ASA (“MPCC” or the “Company”) says it has entered into a share purchase agreement to acquire Songa Container AS (“Songa”) for an aggregate purchase price of USD 210.25 million on a debt and cash free basis (the “Transaction”). Upon closing of the Transaction Songa’s fleet will comprise 11 container vessels with an average size of 2,250 TEU and an average age of 11.9 years (the “Songa fleet”) under the assumption of Songa having completed the sale of its vessels Songa Haydn, City of Hong Kong and FS Ipanema. Nine of the acquired vessels are fitted with scrubbers while three are equipped with the highest ice-class and hence well suited for Baltic trades.

    Constantin Baack, Chief Executive Officer of MPC Container Ships ASA commented: “This transaction is backed by our strong belief in the sustainable container market fundamentals and the desire to take advantage of the significant lag between asset values and rates. The structure of the transaction creates an immediate and accretive impact to our earnings in a container market that continues to strengthen by the day.”

    With the Transaction, MPCC aims to reinforce its position as the leading intra-regional container tonnage-provider with a combined fleet of 75 ships and a total capacity of ~158,000 TEU. The Transaction will add significant scale and operating leverage to the MPCC platform in a persistently strong container market, with rates, charter durations and asset values strengthening on a continuous basis.

    “We are pleased to welcome renowned shareholders like Arne Blystad, Canomaro Shipping and Klaveness Marine to MPCC. This is a milestone transaction for MPCC and we are particularly excited about the cash flow prospects of the combined fleet which will come to the benefit of our existing and new shareholders in the coming years”, CEO Constantin Baack added.

    The Songa fleet has an estimated EBITDA backlog of USD 22.5 million with an average charter length of about 9 months. On a proforma basis MPCC currently expects revenues for the combined fleet in the range of USD 290-315 million and an EBITDA in the range of USD 170-180 million for FY 2021.

    Based on the combined charter portfolio and assuming charter renewals at around current market rates and periods, the MPCC fleet is positioned to potentially generate an EBITDA of above USD 350 million for 2022, with USD 70-75 million of this generated by the Songa fleet. On the basis of the same assumptions for 2023 EBITDA for this year could exceed USD 450 million with USD 80-90 million  generated by the Songa fleet.

    It is agreed that approximately USD 115 million of the purchase price (taking into account Songa’s cash and net working capital) will be settled in cash. This amount includes the refinancing of the outstanding debt. The remaining portion will be settled by way of issuing approximately 48-50 million new shares in MPCC (based on an economic effective date of the Transaction of 31 May  2021 when a mutual understanding of the main terms of the Transaction was reached between the parties and a closing price of the MPCC share of NOK 17.34). Such consideration shares in MPCC shall be of the same class as MPCC's ordinary shares and shall be listed on the Oslo Stock Exchange, and subject to a customary lock-up agreement for a period of 3 months from completion of the Transaction.

    In relation to the cash consideration DNB Bank ASA has committed to provide a USD 127.5 million acquisition facility with a 2 year tenor and effective interest rate of 500 bps plus Libor.

    The Transaction is subject to customary conditions for completion and is expected to be completed by the end of July 2021.

    Arne Blystad, Chairman of Songa Container AS commented: “The container market continues to be strong and MPCC has become a compelling reflection of the underlying container market fundamentals. We are happy to contribute to the consolidation in the container market and build a leader in the regional container segment. Prior to this transaction we were already a shareholder in MPCC and we will become a more significant one post this transaction.”

    DNB Markets acted as lead advisor for MPC Container Ships ASA and Songa Container AS on the Transaction while Clarksons Platou Securities AS and Fearnley Securities AS acted as joint M&A advisors to MPC Container Ships ASA. Advokatfirmaet Thommessen AS has acted as legal deal counsel in respect of the Transaction.




2021 July 31

13:08 Ammpower Corp signs MOU to provide green ammonia energy solutions to Porto Central in Brazil
11:47 Tiel-Waardenburg dyke reinforcement awarded to Van Oord, Dura Vermeer and Ploegam
11:12 Holland America Line takes delivery of new cruise ship at Fincantieri's Marghera shipyard
10:56 IMI and CSM sign agreement for cooperation in various business areas

2021 July 30

18:22 MEYER WERFT gets new order for a residential yacht
18:10 NYK Line announces delivery of the new LNG carrier Diamond Gas Victoria
17:59 Nutrien and EXMAR partner in building a vessel powered by low-carbon ammonia
17:06 Port of Rotterdam with partners sign an agreement to a joint study for commercial-scale hydrogen imports
16:21 Rhenus plans to acquire the Polish freight forwarding and logistics company C. Hartwig
15:42 Free-to-download report on the status of O&G storage and transshipment industry in Russia
15:21 Half of Dutch hydrogen projects are located in Rotterdam
14:49 Sredne Nevsky Shipyard lays down passenger ship of Project A45-90.2 named Victor Astafyev
14:20 Bollinger Shipyards celebrates commissioning of fast response cutters Henry, Hazard and Hatch in Apra Harbor, Guam
13:58 Balakovsky Shipyard launches hydrographic boat of Project Е35.Г, Yury Osokin, for Northern Sea Route
13:15 Maersk pioneers first block train for Decathlon from Vietnam to France
12:53 Warships of Iran, India and Pakistan navies left Kronstadt after participating in the Main Naval Parade
12:34 12th Dredging & Land Reclamation Asia Summit to be held on September 27-30
12:15 Konecranes wins first customer for EPA-approved new diesel-to-hybrid conversion technology
11:49 Changes in Finnlines’ Management: Marco Palmu appointed as Head of Passenger Services
11:26 Handling of dry bulk cargo in Azov-Black Sea Basin expected to grow by 2035
11:20 MAN Energy Solutions and ANDRITZ Hydro agree on hydrogen cooperation
11:03 Broad scope of Wärtsilä solutions selected for OHT’s next-generation wind turbine installation vessel
10:57 Russian cargoes leave neighboring countries’ ports for domestic terminals
10:21 ONE launches Marine Safety and Quality Campaign 2021
10:15 New container terminal for 2,000 TEU put into operation in Novorossiysk
09:38 Nevsky Shipyard welcomes students for summer internship
09:20 Baltic Dry Index as of July 29
09:09 Crude oil market sees downward price correction after a two-day long growth

2021 July 29

18:26 GTT appoints its new Chief Financial Officer
18:06 PGNiG terminates Port Arthur LNG agreement
17:54 FESCO, RZD Logistics and Nurminen Logistics launch regular intermodal service from Asia-Pacific countries to Finland via CPV
17:36 PGNiG Group expands its fleet of gas tankers
17:16 The Hebridean Princess returns to ABP’s Port of Cardiff
16:58 Okskaya Shipyard to build five tugboats of Project NE025 for Marine Rescue Service
16:42 Ever Given arrives to the port of Rotterdam
16:34 PGNiG to purchase more LNG from Venture Global LNG
16:17 Kalmar to deliver 12 straddle carriers to long-term partner Medcenter Container Terminal in Italy
15:56 New BIMCO/ICS Seafarer Workforce Report warns of serious potential officer shortage
15:11 Railway traffic launched through the second Baikal tunnel
14:48 Rosmorport's Petropavlovsk Branch takes part in exercises on maritime search and rescue of people
13:59 The Maritime and Port Authority of Singapore forms Global Centre for Maritime Decarbonisation
13:15 Hydrographic Company to hold auction for construction of Arc7 hydrographic ship
12:37 Baltiysk ferry meets ISM Code requirements
12:13 Sembcorp Marine bags 24 Workplace Safety and Health Awards
11:46 Ongoing travel restrictions continue to impact Tallink Grupp financial results in Q2 2021
11:08 MARAD awards vessel acquisition management contract to Crowley
10:43 Rosmorport’s tugboats assisted sailing boat Pallada mooring in Egvekinot and Provideniya ports
10:08 Thun Tankers announces the launching of product tanker Thun Empower
10:00 British Ports Association welcomes the resumption of international cruise in England
09:35 Baltic Dry Index as of July 28
09:18 SCHOTTEL to deliver a total of ten rudder propellers and two transverse thrusters to Sanmar Shipyards
09:09 Crude oil prices rise on reduction of US reserves
08:00 Verifavia shipping highlights widespread confusion over EEXI technical parameters
07:55 Drewry launches shipmanager Steering Group to power vessel opex benchmarking

2021 July 28

18:20 NOVATEK announces consolidated IFRS results for Q2 and H1 of 2021
18:01 New BIMCO/ICS Seafarer Workforce Report warns of serious potential officer shortage
17:09 PSA & ONE team up to enhance sustainability and reduce maritime environmental footprint
16:28 ECSA and ETF welcome WHO decision to prioritise seafarers’ vaccination
16:03 Rosmorrechflot supports the International Conference “Development of Icebreaking and Support Fleet”
15:42 ERMA FIRST adds world’s smallest ballast water treatment system to product range