Belships Accepts Buyout Offer from EnTrust Global

Norway’s Belships, a prominent player in the dry bulk shipping industry, has recently agreed to a buyout offer from U.S.-based investment manager EnTrust Global. This decision marks a significant milestone for Belships, which is also the majority holder of Norwegian Bulk Carriers. The board of Belships has expressed its commitment to providing competitive returns to shareholders. Meanwhile, EnTrust Global is focused on expanding its investments in maritime and maritime infrastructure. This article delves into the details of the buyout offer and its implications for both companies.

Details of the Buyout Offer

EnTrust Global, through its Blue Ocean maritime investment group, has proposed a voluntary cash offer for Belships at NOK 20.50 per share, equivalent to approximately $1.80 per share. This offer represents a nearly 30 percent premium over the closing stock price on December 19 and a 17 percent premium compared to the 30-day weighted average. The board of Belships has unanimously recommended this offer, describing it as a “fair deal.” Analysts concur, noting that while the valuation may not be exceptionally high, it is reasonable given the current market conditions.

Shareholders, including members of the board and executive management, have committed irrevocably to the offer, accounting for over 61 percent of the shares. EnTrust aims to acquire 90 percent of the shares, which would trigger a mandatory offer for the remaining shares. This strategic move is part of EnTrust’s broader Blue Ocean Strategy, which currently manages over $5 billion in assets within the maritime sector. The firm sees this acquisition as a significant opportunity to enhance its presence in the dry bulk shipping market, with Norway being an attractive hub for maritime activities.

MBO completed at marine services firm – funding from Frontier Development

Belships’ Growth and Future Prospects

Belships has experienced substantial growth since its merger with the Lighthouse Group six years ago. The company has focused on strategic investments to expand its operations and deliver competitive returns to its shareholders. According to the board, the total return during this period has reached an impressive 455 percent, including dividends. This achievement underscores the company’s commitment to value creation and development.

Currently, Belships operates a fleet of 29 vessels, with an additional 12 under construction, totaling 2.6 million deadweight tons (dwt). The latest addition to its fleet, the Belgrace, boasts a capacity of 64,000 dwt and was built by Shin-Kasado Dock Co., Ltd., part of the Imabari Shipbuilding group in Japan. This vessel is designed for versatility and anticipates compliance with Tier 3 requirements, which will come into effect in 2025. The remaining newbuilds are scheduled for delivery between 2025 and 2028.

In a strategic shift, Belships announced in 2023 that it would exit its ship management business. The company has agreed to sell its operations and outsource ship management to UK-based V.Group. This decision reflects Belships’ focus on its core competencies and long-term growth in the dry bulk shipping sector. As the buyout offer from EnTrust Global unfolds, Belships is poised for a new chapter in its long history, with promising prospects ahead.