Aries quits boxes

Michail Zolotas.

Aries Maritime has launched a major reorganisation which will see it quit container shipping and make its bow in the shipmanagement business.

Aries will buy Newlead Shipmanagmenet from its largest shareholder GrandUnion of Greece in an all shares deal which will also see six new vessels, including two capesizes, joining the Nasdaq-listed company.

At the same time Aries will leave the container sector following the $11.4m sale of its two remaining boxships.

Michail Zolotas, CEO of the company, said: "We acquired Aries because we believe that we can use it as a platform for growth. Today, we announce the dropdown of Newlead Shipmanagement, a technical and commercial management company, and six vessels, of which four are dry-bulk vessels and two are product tankers.

“All of these assets are owned by GrandUnion Inc, and Aries will be exchanging shares of common stock in Aries for these assets.

"We believe that Newlead Shipmanagement will improve Aries' operating efficiency, which has been poor to date, by bringing in house the necessary technical and commercial expertise to manage a broad range of vessels.”

Aries will pay $180m for Newlead and the six vessels – the 149,498-dwt Grand Ocean, the 134,982-dwt Grand Venetico, the 68,788-dwt Grand Rodosi (all built 1990), the 75,966-dwt Grand Victoria (built 2002), the 37,337-dwt Hiona (built 2003) and the 37,330-dwt Hiotissa (built 2004). Each is attached to a long-term contract.

However, only $20m will be paid via the issue of new shares at not less than $2.25 each. The remainder will be covered by the assumption of liabilities.

Aries exit from the container trade will be confirmed if a preliminary agreement for the sale of the 2,917–teu pair MSC Seine and Saronikos Bridge (both built 2009) is rubber stamped.

The deals will leave Aries with 18 vessels, of which 11 will be product tankers and seven bulkers.

GrandUnion took control of Aries in October. The Greek shipowner headed by Nick Fistes and Zolotas received nearly 19 million Aries shares in exchange for three capesize bulkers.

Although GrandUnion only owns 34.2% of Aries' outstanding shares, Rocket Marine has given the company the voting rights for its 36.8% shareholding.

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