Belships

Belships ASA acquires ultramax bulk carrier

Belships ASA (OSE: BEL) has entered into an agreement to acquire the 63,000 dwt

bulk carrier M/V Sofie Victory. The ultramax vessel was built at New Times

Shipbuilding, China in 2016.

Belships will acquire all shares in the single purpose company Sofie Victory AS,

being the owner of M/V Sofie Victory. Sellers are the Bergen, Norway based

company EGD Ultra Eco AS (holding 80 per cent of the shares in Sofie Victory AS)

and Cyprus based Blossom Shipmanagement Ltd (holding 20 per cent of the shares

in Sofie Victory AS). EGD Ultra Eco AS is ultimately controlled by investor

Espen Galtung Døsvig.

The agreed purchase price is USD 24.15 million, of which approximately USD 14

million is debt. Of the net consideration of approximately USD 10 million, USD

2.0 million will be paid in cash while the remaining amount will be settled

through a proposed issue of new Belships shares to the sellers of Sofie Victory

AS. The agreed share price in the transaction is NOK 7.00 per share. The Vessel

is time chartered to ED&F Man Shipping Ltd until March 2021 at an index based

rate with a minimum floor above current market levels.

The acquisition is expected to be completed by the end of the second quarter

2019. Following the transaction, the Belships fleet will count 17

Supramax/Ultramax bulk carriers. Furthermore, Belships will take delivery of a

newbuilding in the first half of 2020.

Belships' strategy going forward is to grow accretively as a fully integrated

shipowner and operator of geared bulk carriers. The acquisition of Sofie Victory

and the proposed share issue will, in accordance with Belships' shareholder

strategy, further expand Belships' shareholder base and improve share liquidity.

For further information, please contact Lars Christian Skarsgård, Belships CEO,

phone +47 977 68 061 or e-mail [email protected].

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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