TradeWinds
Shipping Index

BLT eyes CECO

PT Berlian Laju Tankers (BLT) has launched a takeover bid for troubled Norwegian shipowner Camillo Eitzen & Co.


BLT is looking to acquire CECO
The Indonesian owner said it plans to submit a voluntary exchange offer for all outstanding shares in CECO.

CECO shareholders will be offered mandatory exchangeable bonds (MEB) equivalent to NOK 25 per CECO share which will be converted into shares.

BLT said the offer represents a premium of 270% on the CECO share price of NOK6.75 ($1.17) at the close of business on Friday.

The deal is subject to a number of conditions including the successful private placement in BLT of a minimum of $200m in new equity.

The offer is expected to be completed by the end of November, BLT said.

CECO’s board and the main shareholders representing 76% of its stock are said to “support the offer”.

BLT said CECO’s board and chairmen Axel C Eitzen as the controlling shareholder have entered into an exclusivity agreement with BLT.

If the offer proceeds BLT says it will seek a secondary listing of its share in Oslo, increasing its visibility and liquidity to CECO and BLT shareholders.

BLT said the combined entity for the past year would have been $2.3bn with an EBITDA of $499m.

Including newbuildings the group will own and/or operate 157 chemical tankers, 14 oil tankers, 42 gas tankers, 50-60 bulkers and an FPSO.

Axel C Eitzen will remain actively involved in the further development of the combined group and will be its second largest shareholder, BLT said.

RS Platou Markets is acting as financial advisor to BLT. ABG Sundal Collier ASA and Carnegie ASA are acting as advisors to CECO.

Bugge, Arentz-Hansen & Rasmussen are acting as legal advisors to BLT, while Wikborg Rein & Co is acting as legal counsel to CECO.

Published: 02:03 GMT, 05 Oct 09 | updated: 03:28 GMT, 05 Oct 09
Latest News
Article image

Pride rejigs drill deal

Battle between BP and New York-listed drilling giant squashed as parties agree to amend vessel dayrate.

16:32 GMT, 02 Sep 2010
Article image

Horizon Shipbuilding scores

US shipyard victorious in heated battle for a bite of government newbuilding deal.

15:29 GMT, 02 Sep 2010
Article image

Iranian volumes on the climb

Ports handled 56.12m tonnes of cargo in the last five months, up more than 5%.

14:40 GMT, 02 Sep 2010
Article image

Swiss score for Frontline

Tanker giant ties up three-year VLCC deal with Transcor Astra Group.

13:13 GMT, 02 Sep 2010
Article image

Wan Hai winning again

Taiwanese boxship player continues to forge ahead in 2010 after dire previous year.

12:52 GMT, 02 Sep 2010
Article image

Swee Joo in default

Malaysian bulker and boxship owner in talks with banks after being unable to meet debt repayments.

10:59 GMT, 02 Sep 2010
Article image

Capex fears draw BLT cuts

Fitch follows S&P in cutting its ratings on Berlian Laju Tanker.

10:24 GMT, 02 Sep 2010
Article image

Yang Ming stronger

Taiwanese container line turns around first-half losses as markets improve.

10:04 GMT, 02 Sep 2010
Article image

Tanker free after grounding

Atlas ship refloats after hitting Horseback Shoal hard in St Lawrence, Canada.

09:29 GMT, 02 Sep 2010
Article image

Remoy pens Kleven pair

Olympic Shipping rocks up at Norwegian yard with double order potentially worth over $120m.

08:56 GMT, 02 Sep 2010
Article image

MOL depreciates to accumulate

Japanese owner reportedly extends LNG carrier depreciation period, boosting bottom line.

08:41 GMT, 02 Sep 2010
Article image

Heavyweights in at K-Sea

First Reserve and Kayne Anderson inject cash into US tug and barge owner.

08:12 GMT, 02 Sep 2010
ShipX Auction