Seanergy Controlling Interest in Bulk Energy

Monday, August 17, 2009

Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) (NASDAQ: SHIPW) announced that it has closed on its previously announced agreement to purchase a 50% ownership interest in Bulk Energy Transport (Holdings) Limited (BET) from Constellation Bulk Energy Holdings, Inc. BET's other equity owner is Mineral Transport Holdings, Inc., which is an affiliate of members of the Restis family, one of the Company's major shareholders. The purchase price for the shares was $1.

BET owns five drybulk carriers, four Capesizes and one Panamax. As result of this acquisition, the Company's controlled fleet increases to a total of 11 vessels with a carrying capacity of approximately 1,043,296 dwt and an average age of about 13 years.

Concurrently with the closing of the acquisition, BET has entered into a technical management agreement with Enterprises Shipping and Trading, S.A. and a commercial brokerage agreement with Safbulk Maritime S.A. at terms similar to those that the Company's existing fleet has with these entities. Each of EST and Safbulk are affiliated with members of the Restis family and are the technical manager and commercial broker of the Company's current fleet.

The Company has also entered into a shareholders' agreement with Mineral Transport, pursuant to which the Company will control BET's Board of Directors and appoint BET's Managing Director. The shareholders agreement also addresses customary matters such as transfer of shares and shareholder reserved matters.

Dale Ploughman, the company's Chief Executive Officer, stated "This acquisition is the first step in our objective of transforming Seanergy into a leader in the global shipping industry. We are pleased to have closed it in just one month since we announced it. With the BET acquisition we expand the range of vessels offered to our clients and increase our revenue and profit generation capability. The acquisition is an important step as it enhances our shareholders' value and still gives us the ability to focus on fleet growth opportunities during a time of relatively soft asset values in the dry bulk sector. The Proforma Net Book Value of BET is approximately USD 22.8 million and going forward BET is expected to add to Seanergy approximately USD 32 million of EBITDA up to December 2010 (Please refer to a subsequent section of the press release for a reconciliation of EBITDA and net income). By consolidating all of our vessels under one umbrella with technical and commercial management agreements with EST and Safbulk respectively, we expect to generate synergies and economies of scale further optimizing our fleet operations."

(http://seanergymaritime.com)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Chevron Suffers Loss, Plans Job Cuts

Chevron Corp. reported a first-quarter loss as slumping oil prices continued to drag down revenue. The company said that it is "on target" to lay off a total of 8000 workers by the end of 2016,

China COSCO to be First through the Expanded Panama Canal

China COSCO Shipping has won the draw for its container vessel Andronikos to make the ceremonial first transit through the Expanded Panama Canal during the waterway’s inauguration on Sunday, June 26.

Sellick Equipment to Open New Facility

On April, 20, 2016, at the young age of 97 years, Walter Sellick along with sons Howard Sellick - President, David Sellick - Vice President and grandson Colin Sellick - Systems Manager,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0680 sec (15 req/sec)