Pacific Basin Acquires Four Vessels

 

"On May 14, 2018, PB Vessels Holding Limited, a subsidiary of the company, entered into four separate ship contracts for the purchase of vessels," said a press statement.

 

The four bulkers are a 58,000 dwt Supramax built in 2010, a 64,000 dwt Supramax resale newbuild, a 37,000 dwt Handysize constructed in 2015 and a 37,000 dwt Handysize resale newbuild.  

 

The consideration payable to sellers will be satisfied in a combination of (i) a conditional issue to such Sellers (or their nominees) of 170,760,137 New Shares in aggregate at HK$2.036 per Share under the General Mandate amounting to HK$347,667,640 (equivalent to US$44,290,000) in aggregate; and (ii) cash amounting to US$44,210,000 in aggregate. Estimated delivery for the second hand vessels is between Q4 2018 and Q1 2019, and for the resale newbuildings is between mid-2018 and Q4 2018.

 

The New Shares to be allotted and issued represent (i) approximately 3.83% of the existing issued share capital of the Company, and (ii) approximately 3.68% of the enlarged issued share capital of the Company as enlarged by such allotment and issue.

 

The issue of the New Shares is to partially satisfy the consideration of the acquisitions from the Sellers, which enhances the Group’s balance sheet strength while acquiring suitable vessels for the Group’s business.

 

"The Company looks for opportunities to buy and charter suitable quality ships for its fleet. These vessels are modern, high quality Imabari and Tsuneishi-built ships with designs suitable for the company’s operations," the statement said.

 

Two of the four vessels are Supramaxes, allowing the Company to increase its relatively low proportion of owned versus chartered-in Supramax vessels.

 

The Dry Bulk market is recovering and the Board considers that these purchase prices are attractive and that the vessels will be beneficially employed within the Group’s fleet for the long term after they are delivered.