EnTrust Global to Acquire Belships in Tender Offer
In a significant move within the maritime investment sector, US asset management firm EnTrust Global has announced plans to launch a voluntary cash tender offer for Norwegian bulker owner Belships. This acquisition reflects EnTrust’s strategy to expand its maritime investment portfolio and capitalize on the growing demand for bulk carriers. The offer, which values Belships at approximately NOK 5.182 billion (around $452 million), is poised to reshape the landscape of the shipping industry in Norway.
Details of the Tender Offer
EnTrust Global’s special purpose vehicle, Blue Northern, will propose a cash offer of NOK 20.50 per share for all issued and outstanding shares of Belships. This bid represents a premium of nearly 30% over the company’s closing price as of last Thursday. The offer is not just a financial transaction; it signifies EnTrust’s commitment to enhancing its maritime investment strategy. The acceptance period for this offer is expected to commence on January 24, 2024, and will remain open for at least 20 business days. EnTrust aims to finalize the transaction in the first or second quarter of 2025. Following the completion of the acquisition, Belships is anticipated to be delisted from the Oslo Stock Exchange.
Notably, shareholders who are part of the board and management have already accepted the offer. This group collectively holds 61.2% of Belships’ outstanding shares. Key figures include Frode Teigen, the largest shareholder, along with chairman Peter Frølich and CEO Lars Christian Skarsgård. Teigen has a substantial stake, owning 53.9% of the shares in the Oslo-listed company, which he acquired six years ago through his investment vehicles, Kontrari and Kontrazi.
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Strategic Implications for EnTrust Global
The acquisition of Belships is a strategic move for EnTrust Global, allowing the firm to enhance its maritime investment portfolio. Belships operates a fleet of 42 bulk carriers, with plans to add 12 ultramaxes between 2025 and 2028. This modern fleet positions Belships as an attractive investment opportunity. Svein Engh, senior managing director and portfolio manager at EnTrust, emphasized the potential for growth through this acquisition. He stated that the investment in Belships provides a versatile platform that aligns with the firm’s long-term goals.
As the maritime industry continues to evolve, the demand for efficient and modern bulk carriers is on the rise. EnTrust’s acquisition of Belships positions it well to meet this demand. The integration of Belships into EnTrust’s portfolio will likely enhance operational efficiencies and expand market reach. This move also reflects a broader trend in the investment community, where firms are increasingly looking to capitalize on opportunities within the maritime sector. With the acceptance of the offer by key shareholders, the path forward appears promising for both EnTrust Global and Belships.
