Genco Shipping & Trading Limited acquires nine capesize vessels from Metrostar
Genco Shipping & Trading Limited announced that it has agreed to acquire nine capesize vessels from companies within the Metrostar Management Corporation group for an aggregate purchase price of approximately $1.1 billion. The acquisition is subject to the completion of customary additional documentation and closing conditions.
Two of the nine Capesize vessels were built in the first quarter of 2007 and are expected to be delivered to Genco during the third quarter of 2007. The remaining seven Capesize vessels are expected to be built, and subsequently delivered to Genco, between the fourth quarter of 2007 and the third quarter of 2009. Upon completion of the acquisition, Genco's fleet will consist of nine Capesize, seven Panamax, seven Handymax, and five Handysize drybulk carriers, with a total carrying capacity of approximately 2,559,000 dwt and an average age of 8 years.
Robert Gerald Buchanan, President, commented, "Consistent with Genco's goal of becoming the bellwether in the industry, the agreement to acquire nine Capesize vessels will expand the Company's fleet of high quality vessels by well over 100 percent on a tonnage basis. By acquiring the largest class of drybulk vessels, we will also enhance our position for benefiting from the strong demand for iron ore and coal in China and other developing countries. With this acquisition, Genco has once again utilized management's strong industry relationships to further enhance the Company's modern fleet profile and future commercial prospects. Given that four of the nine Capesize vessels already secured on time charters ranging from approximately three to four years, we are well positioned to provide shareholders with stable earnings while maintaining the ability to benefit
from the industry's favorable long- term fundamentals."
Two of the nine Capesize vessels were built in the first quarter of 2007 and are expected to be delivered to Genco during the third quarter of 2007. The remaining seven Capesize vessels are expected to be built, and subsequently delivered to Genco, between the fourth quarter of 2007 and the third quarter of 2009. Upon completion of the acquisition, Genco's fleet will consist of nine Capesize, seven Panamax, seven Handymax, and five Handysize drybulk carriers, with a total carrying capacity of approximately 2,559,000 dwt and an average age of 8 years.
Robert Gerald Buchanan, President, commented, "Consistent with Genco's goal of becoming the bellwether in the industry, the agreement to acquire nine Capesize vessels will expand the Company's fleet of high quality vessels by well over 100 percent on a tonnage basis. By acquiring the largest class of drybulk vessels, we will also enhance our position for benefiting from the strong demand for iron ore and coal in China and other developing countries. With this acquisition, Genco has once again utilized management's strong industry relationships to further enhance the Company's modern fleet profile and future commercial prospects. Given that four of the nine Capesize vessels already secured on time charters ranging from approximately three to four years, we are well positioned to provide shareholders with stable earnings while maintaining the ability to benefit
from the industry's favorable long- term fundamentals."