Fjord Defence Group ASA

M&A Activity • Mar 24, 2017

Acquisition of two Kamsarmaxes

Acquisition of two Kamsarmaxes

Oslo, March. 24, 2017 / Songa Bulk AS (Merkur: SBULK-ME)

(the "Company" or "Songa Bulk") is pleased to announce that

it has entered into an agreement to acquire two kamsarmax

bulk carriers built in 2008 at Tsuneishi Japan (82,107 dwt) and

2011 at Hyundai Samho Korea (81,502 dwt). The vessels have been

acquired at an aggregate sum of USD 32.85 million.

The 2011 built vessel will delivered by mid May and the 2008 built

vessel within the end of September. The 2011 built vessel has a

charter party attached with a duration until end November 2017 at

USD 8,075 per day net.

The Company will establish wholly owned subsidiaries to take

delivery of the vessels.

This brings the total fleet of the Company to seven vessels. Two

Supramaxes with an average age of 6.5 years and with an average

acquisition price of MUSD 13.35 million, and five Kamsarmaxes with

an average age of 7.5 years and an average acquisition price of MUSD

14.38 million.

Further the Company has chartered out Songa Flama for a one year

time charter period commencing upon delivery of the vessel in early

April, at USD 9,880 per day net.

About Songa Bulk

Songa Bulk AS (the "Company"), established by the Blystad

Group and Herman Billung. The Company has no debt, no legacy

issues and a cost efficient operational platform. The

Company seeks to actively manage the cyclicality of the

drybulk market by investing at historically low levels,

focus on returning capital to shareholders through asset

sales and/or dividends as the market recovers.

Please see our new webpage: www.songabulk.no