Belships fleet expansion and share issue

Belships ASA (OSE: BELCO) has entered into an agreement for the acquisition of an Ultramax bulk carrier.

A secondhand Ultramax bulk carrier built in 2017 by a Chinese shipyard will be acquired in a cash and shares transaction. Delivery of the vessel is expected during the second quarter of 2021 whilst an existing time charter party at a marginally cash-positive rate will follow the vessel and is expected to run until the end of October 2021.

The agreed purchase price is USD 21.75 million, of which 80% will be paid in cash. The remaining consideration will be settled through an issue of 4,988,000 new Belships shares to the seller of the vessel. The agreed share price in the transaction is NOK 7.50 per share.

The vessel is intended to be financed with bank financing for approximately 60 per cent of the purchase price. If so, the vessel acquisition is expected to influence the Group's cash holdings by about USD 4.35 million. The estimated cash breakeven for the vessel upon delivery is about USD 9,500 per day including operational expenses.

The agreement is conditional upon certain steps to be completed by the parties involved. Conclusion is expected within April 2021.

"This is another milestone for Belships. We expand our fleet whilst maintaining capital discipline in our quest to grow the company further. The goal remains focused on creating value for our shareholders and increase the attractiveness of trading our shares," said Belships CEO, Lars Christian Skarsgård.

This acquisition and share issue will expand Belships' shareholder base and continue to improve share liquidity and free float.

Following completion of all announced transactions, the Belships fleet will count 25 Supramax/Ultramax bulk carriers, with an average age of 5 years, including 4 newbuildings to be delivered within 2021.

Belships has a uniform and modern fleet of bulk carriers well positioned to capitalise on a recovery for vessel values. Our strategy is to develop Belships as an owner and operator of geared bulk carriers, through quality of operations and accretive growth opportunities.

For further information, please contact Lars Christian Skarsgård, Belships CEO, phone +47 977 68 061 or e-mail LCS@belships.no


This stock exchange announcement was published by Edwin Johansen, Accounting Manager in Belships ASA on 8 April 2021 at 07:00 CET.


This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.