NEWPORT – Pangea Logistics Solutions Ltd. is adding 15 "handy-size" dry-bulk cargo ships to its fleet of 26 larger vessels as part of a definitive acquisition agreement with Strategic Shipping Inc. in a deal valued at about $295 million.
In an 8-K form filed Sept. 24, Pangea Logistics Solutions – a Newport-based maritime logistics and transportation company – said it will acquire the vessels from Strategic Shipping Inc., a privately held company in the United Kingdom managed by M.T. Maritime Management LLC,
located in Southport, Conn., in an arrangement that includes vessel-related financing agreements of approximately $102 million.
Pangaea will issue approximately 19 million shares of its common stock to SSI equal to approximately 29% of the company's outstanding common stock upon completion of the proposed transaction, which represents the relative net asset value of SSI's vessels compared to the estimated net asset value of Pangaea of approximately $478 million, or about $10.20 per share.
The transaction, which is expected to close in the fourth quarter, subject to closing conditions and shareholder approval, will increase Pangea Logistics Solutions’ fleet to 41.
Handy-size cargo ships generally have a carrying capacity of up to 35,000 dead weight tons.
Pangaea has an existing fleet of 26 ships that have higher carrying capacities, including the supramax (up to 60,000 dead weight tons), ultramax (up to 65,000 dead weight tons), panamax (up to 80,000 dead weight tons) and post-panamax (up to 110,000 dead weight tons).