MC Shipping Announces Acquisition of An LPG Vessel, Disposal of Interest in a Container Vessel, and Dividend
July 09 2007 - 12:12PM
Business Wire
MC Shipping Inc. (AMEX: MCX) announced today that it has agreed to
acquire a liquefied petroleum gas (LPG) vessel from a subsidiary of
Vitol SA, a major international oil and gas trading company. The
vessel, Keswick, is built in 2003 and has a capacity of 11,000 cbm.
The vessel is expected to be delivered at the end of June 2008.
Simultaneously with the purchase, she will be time-chartered back
to Vitol SA for a minimum period of three years. The Company
expects to finance the acquisition with a combination of bank debt
and internal cash resources. The Company will not be paying any of
the purchase price until 2008. �Staying committed to the LPG
shipping, we are satisfied to realize this value-creating
investment in the vessel that will help to improve our fleet�s age
profile, expand our presence in the buoyant mid-size LPG sector and
provide attractive returns to the shareholders, generating
approximately $4.6 million in additional revenues and $3.3 million
in EBITDA per year,� commented CEO Tony Crawford. Disposal of
Interest in a Container Vessel The Company further announced that
its associate, MUNIA Mobiliengesellschaft mBH & Co. KG
(�MUNIA�), in which the Company retains a 25.8% interest, has
agreed to sell its container vessel, Maersk Belawan to a third
party for a gross consideration of $13.15 million. The proceeds
will be used to prepay the loan balance on the vessel and pay the
costs and duties incurred in connection with the sale. Remaining
net proceeds are expected to be distributed to the shareholders of
MUNIA, including the Company, which will receive $1 million plus
40% of any amount in excess of $4.9 million. The delivery of the
Maersk Belawan vessel to the buyers is expected before the end of
February 2008. �We are pleased to benefit from participating in yet
another significant release of value on the assets that we
strategically placed in the special-purpose KG vehicle back in
January 2005, thus maximizing returns to our shareholders,� stated
Crawford. �This transaction also signifies another step to focus on
the LPG business that we believe offers the most attractive
long-term prospects for growth and profitability. Further disposals
of these investments will be made when we can release similar
value," concluded Crawford. Dividend The Company also announced
today that its Board of Directors has declared a quarterly cash
dividend of $0.0625 per share of common stock payable on July 30,
2007 to shareholders of record as of July 16, 2007. ABOUT MC
SHIPPING INC. MC Shipping Inc. is an international shipping company
focused on maritime transportation of liquefied petroleum gas
(LPG), with headquarters in Monaco and an office in London.
Presently, MC Shipping fully or partially owns and operates a fleet
of 19 vessels that serve the world�s major oil, gas, shipping and
trading companies. FORWARD-LOOKING STATEMENTS Except for the
historical information contained herein, the matters discussed in
this press release could contain �forward-looking statements� that
are based on current expectations and assumptions that involve
risks and uncertainties, which could cause actual results to differ
materially from those predicted. MC Shipping Inc. undertakes no
obligation to update any forward-looking statement to conform to
actual results or changes in the Company�s expectations, whether as
a result of new information, future events, or otherwise.
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