• 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 August 4

18:27 CTRL Marine Solutions announce their acquisition by Campbell Johnston Clark
18:07 IMCA signs Gulf of Guinea Declaration on the Suppression of Piracy
17:46 Shipyard OKA launches the Alexander Ivanov, ninth dry cargo ship of RSD59 series
17:36 PSA & Samudera strengthen strategic partnership in cargo solutions and logistics
17:16 KMZ supplied water jet ejectors for a new small sea tanker of project 03182
17:15 Iridium announces partnership with Canadian Coast Guard
16:20 Port of Tanjung Pelepas jumps to 15th in world ranking
16:05 DNV and Nakilat JDP works to improve vessel software reliability and quality
15:41 Kawasaki Heavy Industries, Yanmar Power Technology and Japan Engine Corporation establish a new company HyEng Corporation
15:36 Akhtarskaya Shipyard launches RS "Chernomorets"
15:27 Registration to Development of Icebreaking and Support Fleet Int'l Conference still underway
14:43 KhMAO-Yugra to take delivery of Meteor 120R hydrofoil duo in 2021-2022
14:11 ClassNK grants its first DSS notation for 211,000DWT bulk carrier “DREAM CLOVER”
13:59 ”K” LINE and Chubu Electric Power commence joint development agreement for tidal energy project in Canada
13:40 Vostochnaya Verf completed shipyard's sea trials of the Okhotsk
12:06 LORP fleet carried 670 000 tonnes of cargo since the start of this year shipping season
11:09 Western Australia looks to implementing stricter controls
10:09 Konecranes adds Wire Rope Monitoring to TRUCONNECT portfolio
09:59 Crude oil prices edging down on coronavirus-related restrictions
09:53 Baltic Dry Index as of Aug 3
09:29 Inland waterways Azov-Don basin’s seven-month cargo volume edges up 1%
09:21 ICTSI Honduras, Big Creek Terminals ink mutual benefit pact
08:21 MABUX: Global bunker prices may continue slight downward trend on Aug 04

2021 August 3

18:17 Iridium Connected® Viettel S-Tracking Vessel Monitoring System wins Top 10 Sao Khuê Award
17:59 Lead passenger ship Meteor 120R of new generation launched in the Nizhny Novgorod Region
17:25 A subsidiary of KCC has signed a new Contract of Affreightment for its CLEANBU fleet with a major international charterer in the tanker market
16:47 Petersburg Oil Terminal obtains permit for construction of its new handling facility
16:24 Nigerian Chamber of Shipping becomes full ICS member
15:22 Vard delivers “Le Commandant Charcot” to Ponant
15:00 Bunker sales at Vladivostok port in 7M’2021 fell by 30% YoY
14:41 Construction of new facilities to commence at Onezhsky Shipyard in autumn 2021 года
14:23 CMA CGM announces PSS for cargo bound for East Russia
13:42 The Panama Canal resumes seasonal measures to protect migrating marine life
13:12 CMA CGM announces THC for Novorossiysk, Russia import/export
12:57 ABP’s Ports of Ipswich and Ayr enable wheat cargo to be shipped more sustainably
12:22 Wärtsilä to provide efficient service support for Brazilian river tugs despite challenging operating conditions
11:59 MOL to build series of 4 LNG-fueled car carriers
11:58 FESCO starts seasonal delivery of cargo from ports of China and the United States to Chukotka
11:36 Finnlines announces adjustment of bunker surcharge in its own container traffic
10:54 Baltiysky Zavod shipyard casts third one-piece propeller for Project MR-50 product tankers
10:30 Tallink Grupp published its statistics for July 2021
10:09 Maersk raises full-year guidance
09:57 Oil prices decrease amid coronavirus related restrictions
09:41 Baltic Dry Index as of August 2
09:23 Yaroslavsky Shipyard launches non-self-propelled dredging ship of Project RDB 66.42М
09:08 Japan’s Ministry of Internal Affairs and Communications gives the green light to Iridium services
08:58 MABUX: Global bunker prices may drop on Aug 03 following sharp decline on crude market yesterday
08:09 The largest water-rail intermodal terminal of the Yangtze River starts operations

2021 August 2

19:09 Seven dredging ships deployed for operation on Sea Canal in the Gulf of Ob
18:35 LR unveils key appointment for its Maritime Performance Services business
17:54 CMA CGM announces PSS for cargo from the Middle East Gulf to North Europe, Scandinavia, Poland, Baltic, West Med & Adriatic, East Med, Black Sea, North Africa & Morocco
17:46 LUKOIL announces new oil finding in Sayulita prospecting area of Block 10 offshore Mexico
17:30 CMA CGM has announced PSS for cargo from India to North Europe & the Mediterranean
17:28 CMA CGM announces PSS for cargo from North Europe, UK, Scandinavia, Poland & North Spain to Colombia Atlantic & Dominican Republic
17:27 Large hydrographic survey vessel of Project 23370G, Grigory Shadrin, launched in Murmansk
17:23 CMA CGM to launch a new Express Shuttle service linking East Asia to Russian Far East
17:05 Sri Lanka Ports Authority successfully reworks leaked chemical container on board
16:54 Rhenus Group plans to acquire the Polish freight forwarding and logistics company C. Hartwig
16:30 Sea Port of Saint-Petersburg enhanced its environmental safety
16:03 Maersk’s digital logistics platform Twill increases its presence in Gdansk