Belships ASA Announces Cash Offer for Shareholders at NOK 20.50

Announcement of Cash Offer for Belships ASA Shareholders

Belships ASA is making headlines with its latest announcement regarding a highly anticipated voluntary cash tender offer aimed at its shareholders. This offer, valued at NOK 20.50 per share, is part of a strategic move by the company and its parent investors. The total equity purchase price is estimated at around NOK 5.182 billion, not including treasury shares held by the company.

Details About the Offer

The offer from Blue Northern BLK Ltd, a special-purpose vehicle formed by funds managed by the Blue Ocean maritime investment team at EnTrust Global, shows substantial willingness to invest in Belships. Notably, the cash consideration translates to a generous premium of approximately 29.4% over the latest trading price of NOK 15.84 per share as of the announcement date. Additionally, it reflects a 19.4% premium over the volume-weighted average share price that emerged following a recent strategic review.

Understanding the Offer Pricing

The NOK 20.50 offer price is significant in the context of recent share performance. It's built upon specific valuation metrics that indicate the company's robust value proposition in the shipping sector. This price also presents an attractive exit strategy for existing shareholders, especially considering the company's solid growth trajectory over recent years.

Shareholder Support and Company Strategy

The recommendation to accept the offer has garnered unanimous support from Belships' board of directors. The Board's decision was fortified by a fairness opinion from Nordea Bank, confirming that the offer price being presented is financially sound. The alignment of interests is further underscored, as members of the Board and management, holding about 61.23% of the company’s share capital, have already committed to accepting the offer.

Growth Plans Moving Forward

Belships has established itself as a significant player in the global shipping market, emphasizing the construction and operation of Ultramax carriers. The strategic partnership with EnTrust will enable Belships to leverage new investment avenues and enhance its operational capacity. Under this framework, both parties are excited about the potential for comprehensive development in the dry bulk shipping industry.

Commitment to Value Creation

Comments from Peter Frølich, Chair of the Board, and Lars Christian Skarsgård, CEO, reflect a shared vision of continuing value creation that has blossomed since the merger with the Lighthouse Group. Their collective achievements over the past six years include a staggering total return of 455%, showcasing the company's dedication to shareholder value.

Conditions and Timeline for Accepting the Offer

The acceptance period for the offer is expected to commence following the publication of the Offer Document and is planned to remain open for at least 20 U.S. business days. This timeline will allow shareholders ample time to consider the terms of the offer before making any decisions. Additionally, any extensions to the acceptance period will be communicated to ensure transparency.

Looking Ahead: Strategic Implications

The intentions behind the offer extend beyond mere acquisition; it signifies a broader strategy aimed at expanding in the pronounced Norwegian shipping market. EnTrust's investment philosophy is heavily centered on maritime and infrastructure development, making Belships a complementary asset within its portfolio.

Endurance and Stability in Maritime Investments

With a history traced back to 1918, Belships is not just another company; it represents decades of maritime expertise within a dynamic economy. The strategic partnership with EnTrust encapsulates a robust approach to maritime investments, which is vital for navigating the complex waters of today's shipping industry.

Frequently Asked Questions

What is the offer price for Belships ASA shareholders?

The cash offer is set at NOK 20.50 per share.

Who is making this tender offer?

Blue Northern BLK Ltd, managed by EnTrust Global's maritime investment team, is behind the offer.

What is the overall value of the offer?

The total estimated equity purchase price is NOK 5.182 billion.

What premium does the offer represent over the current share price?

The offer represents a premium of approximately 29.4% based on recent trading prices.

When can shareholders accept the offer?

The acceptance period is expected to start around January 24, 2025, and will last at least 20 U.S. business days.

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