News Column

Goldenport To Let Ship Buy Options Lapse After Deciding Against Placing

June 13, 2014

Steve McGrath

LONDON (Alliance News) - Shipping company Goldenport Holdings Inc Friday said it has decided not to proceed with the placing it had announced back in April because it doesn't want to do a placing at a "material" discount to its net fleet value, meaning an option it had to buy seven vessels is likely to expire.

In a statement, the company said it had received strong levels of institutional demand from existing and new investors in the UK and US for the proposed placing, but won't now go ahead.

In April, the company said it was proposing to place up to 10 million new shares to part finance the acquisition of seven modern dry bulk carriers from the Dragnis family.

"The company entered into option agreements to acquire option interests in respect of seven identified vessels on 2 April 2014. The board does not currently intend to exercise the options and expects that they will expire on 30 June 2014, unless they are extended by the grantors in the meantime," it said in a statement.

"The board remains confident in the outlook for the dry bulk sector and will continue with its stated strategy to rebalance and grow the company's fleet of small and medium sized dry-bulk carriers,2 it added.

Goldenport Holdings shares were up 1.9% at 341.25 pence Friday morning.

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Source: Alliance News

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