Bear Stearns Cos' private-equity arm took a majority stake in MC Shipping Inc as part of a deal to buy the entire maritime transportation company for US$284 million. Shares of MC Shipping rose the most in more than two years.
Investors in Monaco-based MC Shipping, which handles liquefied petroleum gas, will receive US$14.25 in cash for each share, Bear Stearns Merchant Banking and MC Shipping said in a statement on Monday. Bear Stearns is paying 20 per cent more than MC Shipping's July 27 closing price of US$11.91.
Bear Stearns Merchant Banking, a division of the New York- based securities firm, oversees almost US$5 billion in capital. Its latest investment fund, MBP III, raised US$2.7 billion. MC Shipping owns 19 vessels and holds contracts to purchase four more, the companies said in the statement.
Shares of MC Shipping rose US$2.08, or 17 per cent, to US$13.99 in American Stock Exchange composite trading on Monday, posting their biggest gain since March 2005, when the company said it would pay its first cash dividend since 1999. Through July 27, the stock had climbed 28 per cent this year.
Under the agreement announced on Monday, Navalmar Transportes Maritimos LDA and Weco-Rederi Holding A/S sold 53 per cent of MC Shipping to Bear Stearns Merchant Banking for US$14.25 a share. MC Shipping stockholders owning 47 per cent of the company not owned by Bear Stearns Merchant Banking will be asked to vote on the sale on Sept 5.
The agreement includes a so-called go shop provision that allows MC Shipping's advisers to solicit rival bids for the next 35 days. If Bear Stearns Merchant Banking doesn't match a new proposal, it agreed to support a bid that amounts to at least US$15 a share, the companies said. MC shipping would have to pay Bear Stearns Merchant Banking a fee of US$7.75 million if it accepts another offer.
DnB NOR Markets advised MC Shipping on the sale, while Milbank, Tweed, Hadley & McCloy LLP served as legal counsel. HSBC Holdings plc and Poten Capital Services LLC advised Bear Stearns, which used Weil, Gotshal & Manges LLP as its law firm. -
Investors in Monaco-based MC Shipping, which handles liquefied petroleum gas, will receive US$14.25 in cash for each share, Bear Stearns Merchant Banking and MC Shipping said in a statement on Monday. Bear Stearns is paying 20 per cent more than MC Shipping's July 27 closing price of US$11.91.
Bear Stearns Merchant Banking, a division of the New York- based securities firm, oversees almost US$5 billion in capital. Its latest investment fund, MBP III, raised US$2.7 billion. MC Shipping owns 19 vessels and holds contracts to purchase four more, the companies said in the statement.
Shares of MC Shipping rose US$2.08, or 17 per cent, to US$13.99 in American Stock Exchange composite trading on Monday, posting their biggest gain since March 2005, when the company said it would pay its first cash dividend since 1999. Through July 27, the stock had climbed 28 per cent this year.
Under the agreement announced on Monday, Navalmar Transportes Maritimos LDA and Weco-Rederi Holding A/S sold 53 per cent of MC Shipping to Bear Stearns Merchant Banking for US$14.25 a share. MC Shipping stockholders owning 47 per cent of the company not owned by Bear Stearns Merchant Banking will be asked to vote on the sale on Sept 5.
The agreement includes a so-called go shop provision that allows MC Shipping's advisers to solicit rival bids for the next 35 days. If Bear Stearns Merchant Banking doesn't match a new proposal, it agreed to support a bid that amounts to at least US$15 a share, the companies said. MC shipping would have to pay Bear Stearns Merchant Banking a fee of US$7.75 million if it accepts another offer.
DnB NOR Markets advised MC Shipping on the sale, while Milbank, Tweed, Hadley & McCloy LLP served as legal counsel. HSBC Holdings plc and Poten Capital Services LLC advised Bear Stearns, which used Weil, Gotshal & Manges LLP as its law firm. -