In a prospectus tied to an upcoming publicoffering of six million shares, New York-listed SFI said it is in “advanceddiscussions” to acquire two modern units from unrelated third parties.
“We are also in discussions with an unrelated logistics company tocharter the vessels out for a period of five years,” it added. “If purchased,expected delivery of the vessels would take place in the fourth quarter of2012.”
Whencontacted by TradeWinds chief executive Ole Hjertakersaid there is no shortage of interesting transactions in other sectors as welland noted offshore, container, and tanker assets are potential targets too.
“This is moreabout finding the right deal than the right sector,” he continued. “We havebeen sitting on the fence for some time and now the time is right to cherrypick the right deals. This is a much better market to put money to use than ayear ago.”
SFI and MorganStanley, the offering’s sole book-runner, have not yet disclosed the price tiedto the six million shares on the table but based on Monday’s $16.00 close theexercise has the potential to top $90m.
A leading equityanalyst who believes an offshore acquisition looks more attractive than thedeal highlighted by the shipowner’s prospectus says two modern car-carrierswould fetch no more than $70m in today’s market, which would leave the company with money to spare.
Regardless of where SFI decides to splash its cash Hjertaker said the offering is significant inthat it illustrates the shipowner, as one of the larger of the listed shipping companies,is able to secure capital for expansion despite belt tightening on Wall Streetand at the industry’s leading lenders.
“The biggerlisted companies that can access the equity, bond and convertible markets areattractive to banks and the banks are willing to do business when they know theyare not the lenders of last resort,” he added.
SFI, which is backed by Norwegian tycoon John Fredriksen, oversees a fleetcomprised of tankers,bulkers, containerships, drilling rigs and offshore support vessels from itsoffices in Bermuda and Norway.
