MPC Container Ships ASA is pleased to announce new measures for portfolio optimisation and capital allocation. The Company has entered into agreements to sell vessels Carpathia and AS Cleopatra as well as commercial agreements for the early redelivery of vessels AS Carlotta and Carpathia, against cash compensation.
Following the sales of Carpathia and AS Cleopatra, MPCC will have reduced the number of joint venture vessels from 8 to 3 since Q4 2021. AS Carlotta will remain fully owned and operated by MPCC. The completion of the transactions is subject to the successful redelivery and/or handover of the vessels.
Portfolio optimisation
“We are pleased to announce a new set of accretive portfolio measures in line with our strategy for portfolio optimisation and rational capital allocation,” said CEO Constantin Baack. “By reducing the number of joint venture vessels, we further simplify and strengthen our corporate structure."
"With these transactions, we also advance significant cash flows in an accretive way with an emphasis on and commitment to returning capital to our investors. In addition, we retain the future potential upside from our fully owned vessel, AS Carlotta.”
Identifying opportunities
The total net consideration, after JV consolidation effects and transaction costs, is expected to be USD 49.8m
“Going forward, MPC Container Ships remains in a favourable market position with a strong balance sheet, and we are confident in our ability to continue to create value by identifying and acting on attractive market opportunities,” Baack continued.
The gross consideration expected to be received amounts to USD 77.7m (the exact amount dependent on timing). USD 52.5m relates to vessels Carpathia and AS Cleopatra, which implies a NAV per share of approximately NOK 35. The total net consideration, after joint venture consolidation effects and transaction costs, is expected to amount to USD 49.8m.
Event-driven distribution
The redelivery and settlement for AS Carlotta is expected to take place in January 2023, after which the vessel will be open for new charters. Carpathia was redelivered from the charterer in December 2022 and is expected to be delivered to its new owner in December 2022.
AS Cleopatra is expected to be delivered to its new owner in January 2023. Subject to the successful completion of the transactions, the Board of Directors intends to declare an event-driven distribution of USD 0.07 per share, payable in February 2023.
