MPC Container Ships acquires Songa Container
22 June 2021
STAR Capital Partnership LLP (“STAR Capital”) is pleased to announce that MPC Container Ships ASA (“MPCC”) has entered an agreement to acquire Songa Container AS (“Songa”) for USD 210 million on a debt and cash free basis. On completion, the Songa fleet will comprise 11 container vessels with an average size of 2,250 TEU.
With the transaction, MPCC aims to reinforce its position as the leading intra-regional container tonnage-provider with a combined fleet of 75 ships and a total capacity of ~158,000 TEU. The transaction will add significant scale and operating leverage to the MPCC platform in a persistently strong container market, with rates, charter durations and asset values strengthening on a continuous basis.
Based on the combined charter portfolio and assuming charter renewals at around current market rates and periods, the MPCC fleet is positioned to potentially generate an EBITDA of above USD 350 million for 2022, with USD 70-75 million of this generated by the Songa fleet. On the basis of the same assumptions 2023 EBITDA could exceed USD 450 million with USD 80-90 million generated by the Songa fleet.
The transaction is subject to customary conditions for completion and is expected to be completed by the end of July 2021.
Find out more information here.
STAR Capital acquired a cornerstone shareholding in MPCC in December 2017.