Golden Ocean, Knightsbridge Set for Merger
Dry bulk shipping companies Golden Ocean Group Limited (GOGL) and the listed dry bulk shipping company in John Fredriksen's business empire Knightsbridge Shipping have chosen March 26 to hold a special general meeting and finalize the merger talks.
If the shareholders approve the plan, the companies expect to conclude the merger by the end of March 2015, subject to the execution of certain definitive documents, customary closing conditions and regulatory approvals.
Knightsbridge said the outlook for the sector in 2015 was looking weak, but it is pushing on in its merger with rival Golden Ocean Group Limited (GOGL).
Knightsbridge and GOGL agreed to merge in October, but have now set a date to consult shareholders at special general meetings to be held on March 26. The combined company, with Knightsbridge as the surviving entity, will be renamed Golden Ocean Group Limited and will operate a fleet of 72 vessels, of which 34 are new buildings under construction as of December 31, 2014.
Knightsbridge Shipping has said it is in the final stages of merging with Golden Ocean, and that the new company plans to consolidate in the sector. "The process to merge with Golden Ocean is entering into its final stage and the companies have called for special general meetings on 26 March, 2015," Knightsbridge said.
"The board and management are dedicated to conclude the process of creating one of the world's leading dry bulk companies. After completion of the merger, the combined company will be in a position to look for further consolidation opportunities in the dry bulk market," the statement added.
The companies’ ended 2014 on different notes, with Golden Ocean posting a fourth quarter net loss of USD 135.1 million, while Knightsbridge ended the same period with a USD 5.3 million net profit.
