Fjord Defence Group ASA

M&A Activity • Feb 9, 2017

Songa Bulk AS announces the acquisition of a kamsarmax built in 2011

Songa Bulk AS announces the acquisition of a kamsarmax built in 2011

Oslo, February. 8, 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 the kamsarmax

bulk carrier M/V Flama (tbn Songa Flama), 80.448 dwt built

at STX, Korea in 2011. The vessel has been acquired for USD

14.8 million.

The vessel, which is the company's fifth acquisition, is

expected to be delivered to Songa Bulk within the end of

March 2017. The Company will establish a wholly owned

subsidiary to take delivery of the vessel.

Arne Blystad, the Chairman of Songa Bulk AS, said: "We are

pleased that the Company is able to identify carefully

selected candidates and carry out transactions within the

parameters of the Company's strategy. We continue to find

asset values attractive in this part of the cycle whilst

maintaining a selective approach to the assets we target."

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.