On 17 September 2019, the Pacific Basin’s wholly-owned subsidiary, PB Vessels Holding Limited, entered into four separate ship contracts for the acquisition of the following four vessels:
(i) one secondhand Handysize vessel from Seller A for a consideration of US$18.63 million;
(ii) one secondhand Supramax vessel from Seller B for a consideration of US$20.51 million;
(iii) one secondhand Handysize vessel from Seller C for a consideration of US$17.20 million; and
(iv) one secondhand Supramax vessel from Seller D for a consideration of US$17.50 million.
The consideration payable to Sellers A, B, C and D will be satisfied by a combination of
(i) a conditional issue to such Sellers (or their nominees) of 105,912,033 New Shares in aggregate at HK$1.80 per Share under the General Mandate, amounting to HK$190,641,660 (equivalent to US$24,367,200) in aggregate; and (ii) cash amounting to US$49,472,800 in aggregate.
Estimated delivery of the vessels from Seller A and Seller B will be between mid-March 2020 and mid-April 2020, and estimated delivery of the vessels from Seller C and Seller D will be between October 2019 and November 2019.
The New Shares to be allotted and issued represent (i) approximately 2.27% of the existing issued share capital of the Company, and (ii) approximately 2.22% of the enlarged issued share capital of the Company as enlarged by such allotment and issue.
The purchase of these vessels is fully in line with the Company’s strategic plan of acquiring quality second-hand Japanese-built ships, and the purchase structure of issuing the New Shares to partially satisfy the consideration payable for the acquisitions will enhance the Group’s operating cash flow, EBIDTA and competitive strength while providing immediate funding for the acquisition of suitable vessels and growth of its fleet for the benefit of the Group’s business.
Application will be made by the Company to the Stock Exchange for approval of the listing of and permission to deal in the New Shares.
Shareholders and potential investors should note that the Issue is conditional upon the Listing Approval having been granted by the Stock Exchange. Accordingly, completion of the Issue may or may not occur and hence Shareholders and potential investors are advised to exercise caution when dealing in the Shares.
Source: Pacific Basin