MPC Container Ships Completes Songa Acquisition
MPC Container Ships ASA announce on Tuesday that it has completed its acquisition of Songa Container AS.
MPC announced in June that it had entered the share purchase agreement to acquire 100% of Songa shares for $210.25 million on a debt and cash free basis.
Constantin Baack, CEO of MPC Container Ships, said, "It is with great pleasure we announce the successful closing of this milestone transaction. Charter rates have continued to rise since the signing of the agreement, improving the risk-reward dynamics of the transaction even further. This transaction will have an immediate accretive impact on our earnings in a surging container market. Our growing fleet reinforces our industry leading position as an intra-regional trade tonnage provider. The visibility of strong cash generation for the years ahead combined with an extremely low residual value risk makes MPCC an attractive and unique investment opportunity during these exciting times in container shipping."
Songa chairman Arne Blystad said, “We are excited to join forces with MPCC. The company is perfectly positioned to generate super profits in the current strong container market and to consolidate this segment further. The present market parameters constitute one of the most attractive opportunities in container shipping in the last decades.”
MPC Container Ships noted the consideration is paid partly in cash and partly in new shares, and in total 49,795,250 new shares are being issued in relation to the transaction. The selling shareholders of Songa who are receiving consideration shares have entered into customary undertakings with MPCC pursuant to which the consideration shares are subject to lock-up of up to three months from completion of the acquisition.