Marinakis - Ross partnership rocks shipping market

This creates one of the world's largest listed tanker companies through a $ 1.65 billion transaction. Thus, NASDAQ's shipping company Capital Product Partners (CPLP) is implementing one of the largest and most impressive deals in recent years.

As it became known, the company is joining its tanker fleet of a total of 25 ships with the Diamond S Holdings L.P fleet, creating one of the world's largest listed tanker fleet in the world, numbering 68 tankers of high standards.

CPLP will allocate 22 MR and three Suezmax tankers to a new company, which will merge with Diamond S Shipping, and will distribute the shares of the new company to all CPLP shareholders. CPLP shareholders will receive a premium of about 11% of the fleet's net worth, as this merger allows Diamond S to be listed directly into the NYSE. Along with Evangelos Marinakis, Gerassimos Kalogloratos and Gerasimos Ventouris will also participate in the new joint venture.

According to estimates of banking and stock market circles, this premium is one of the highest paid to a listed shipping company.

It is worth noting that DSS Holdings L.P., with which Capital Product has come into agreement, is one of the leading shipping companies operating in the tanker sector, managing a total of 33 Medium Range tankers and 12 Suezmax tankers. It is also worth mentioning that Diamond S is held by US Trade Secretary Wilbur Ross and other prominent US investors and is managed by the firm belonging to Rossand his asociates.

It is an agreement that, in addition to its importance as such, proves in the most impressive way the appreciation and recognition enjoyed internationally by Evangelos Marinakis and his companies in the global financial markets and of course in shipping. Capital Product Partners, after over a decade after its introduction to NASDAQ, enjoys full recognition of US money markets. It should be noted that, despite the volatility of shipping markets, the company has paid dividends from the beginning and has one of the most powerful balance sheets on the market.

For its part, Diamond S Shipping after merging with the CPLP tanker fleet is expected to be the leader in the crude oil tanker and refineries markets, benefiting from a balanced and large-scale shipbuilding portfolio consisting of 68 tankers of high specification with an average age of less than 8 years. The new company is expected to be listed on the New York Stock Exchange. Based on the agreement, the Board of Directors will consist of 7 members, three of which will be nominated by WR Ross & Co and two by Capital.

Average age of ships

Upon completion of the agreement, Capital Product Partners will become a container and dry cargo ship management company with an average age of ships of 6.6 years.

All its vessels will be under medium and long-term charters, with the remaining charter duration of 5.3 years, thus reinforcing the predictability of cash flows for its shareholders. Capital Product will also continue to maintain a robust balance sheet and focus on growth with the acquisition of durable over-time charters.

Craig Stevenson, managing director of DSS Holdings, commented, inter alia: "Our organization is pleased to create one of the world's largest tanker companies with CPLP. This transaction will take place at a very good time in the tanker market and will create one of the largest and highest quality fleets as well as one of the best capitalized shipping companies on the market. We look forward to taking advantage of CPLP's prominent experience and reputation for further development of the company. "

For his part, CPLP CEO Jerry Kalogiratos said: "We are particularly excited about this merger with Diamond S. This transaction represents a strategic step for generating surplus value for our shareholders and gives us an opportunity to unite our tanker fleet with Diamond S Shipping, which has excellent management with an excellent track record in the field of shipping »