Pacific Basin spending spree to catch dry bulk tailwinds

Pacific Basin chief executive Mats Berglund

Pacific Basin, Hong Kong’s leading dry bulk operator is adding to earlier acquisitions this year with the purchase of five bulkers.

The company said yesterday it would spend $104.6m on four second-hand supramax and one second-hand handysize vessels. The funds raised for the purchase comprise a split between the issue of Vessel Consideration Shares amounting to $46.1m and $58.5m in cash.

All of the vessels were built at Japanese yards. Of the supramax purchases, two were built in 2014 at Tsueneishi and one is a resale newbuild from the same yard; it will be delivered in 2018. The fourth supramax was built at Imabari in 2016, along with the handysize, which was originally delivered to the previous buyer in 2016. The vessels will be delivered to Pacific Basin between mid-August and end-December 2017, with the exception of the resale newbuilding.

Pacific Basin said the vessel consideration shares to be allotted and issued represent approximately 5.37% of the existing issued share capital of the company, and approximately 5.11% of the enlarged issued share capital of the company as enlarged by such allotment and issue.

“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. Four of the five vessels are supramaxes allowing the company to increase its relatively low proportion of owned versus chartered in supramax vessels. While supply and demand factors remain uncertain, the dry bulk market is recovering and the Board considers that these vessels can be purchased at attractive prices and that they will be beneficially employed within the Group’s fleet for the long term after they are delivered,” Pacific Basin added in a release to the Hong Kong Stock Exchange.

Pacific Basin bought two handysize ships and a supramax vessel in the first half of 2017, the latest acquistions boosts the fleet to 106 ships.

Be the first to comment

Leave a Reply

Your email address will not be published.


× 5 = 25