GrandUnion in big

Advancing a takeover deal launched in June, GrandUnion will control a large majority of shares in Aries Maritime Transport, Nasdaq-listed Aries said Wednesday.

Under a new agreement, Mons Bolin's and Gabriel Petridis' Rocket Marine will vote all of its shares however GrandUnion chooses.

GrandUnion, a Greek owner tied to 46 bulkers, tankers and newbuildings, will transfer 2.67 million Aries shares to Rocket Marine, giving Rocket 36.8% of the total shares and GrandUnion control of 34.2%.

But the voting agreement gives GrandUnion control of 71% of Aries, an Athens-based owner of nine products tankers and two containerships.

The arrangement comes three months after GrandUnion, controlled by Michael Zolotas and Nicholas Fistes, inked a letter of intent to sell Nasdaq-listed Aries three bulkers in exchange for shares and control of Aries' board.

"This agreement serves as an important milestone as we continue to make notable progress towards completing this strategic transaction," said Aries chief executive Jeff Parry. "By expanding our fleet with the addition of three capesize vessels, Aries will enter a new asset class to take advantage of the global demand for core dry-bulk commodities."

The latest deal still requires definitive agreements with lenders, however.

Nicholas Fistes

As part of the overall transaction, Investment Bank of Greece is buying $145m in 7% senior unsecured convertible notes, due in 2014, which Aries plans to use for vessel acquisitions and paying down debt, among other potential uses.

In addition, Aries' current lenders have agreed to refinance its revolving credit facility.

Under the original letter of intent, the 135,364-dwt Yiosonas (built 1992), the 151,738-dwt Grand Nike (built 1995) and the 172,972-dwt Grand Mirsinidi (built 1993) will enter Aries' fleet.

Aries says the Yiosonas, to be renamed China, will be on time-charter to Deiulemar Shipping through April 2016. It will earn a net rate $12,588 per day.

Taiwan's TMT Bulk will charter the Grand Nike, to be renamed Brazil, for a net rate of $28,598 per day for the first two years and $25,830 for the remainder of the charter, with a 50% profit sharing option. The charter lasts until December 2014.

TMT also will take the Grand Mirsinidi, to be called the Australia, for 11 to 13 months at a net rate of $26,838 per day.

"With all three vessels locked away on medium to long-term time charters, we expect to strengthen our fixed revenue streams and increase the Company's future earnings potential for the benefit of shareholders," Parry said.

George Xiradakis, who chairs the Aries committee tasked with evaluating the deal, says existing shareholders will benefit from the transaction.

The deal will see Fistes become chairman of Aries, while Zolotas will become executive director and president, as the board swells to seven members.

Navios Maritime-linked Allan Shaw will replace Ioannis Makris as finance chief and will become a director.

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