Norway’s Belships Agrees to Buyout by US-Based Investment Manager EnTrust
Belships Agrees to Buyout Offer from EnTrust Global
Norway’s Belships, a prominent player in the dry bulk shipping industry, has recently accepted a buyout offer from U.S.-based investment manager EnTrust Global. This agreement marks a significant milestone for Belships, which is also the majority holder of Norwegian Bulk Carriers. The deal aims to enhance EnTrust’s presence in maritime investments while providing competitive returns to Belships’ shareholders. The board of Belships has expressed optimism about this transition, highlighting the company’s successful journey since its merger with the Lighthouse Group six years ago.
Strategic Growth and Shareholder Value
Belships has undergone a transformative journey since its merger with the Lighthouse Group in 2017. The company’s leadership, including Chair Peter Frølich and CEO Lars Christian Skarsgård, emphasized their commitment to strategic investments aimed at growth. Over the past six years, Belships has achieved a remarkable total return of 455 percent, including dividends. This impressive performance underscores the company’s dedication to value creation and shareholder satisfaction.
The board’s unanimous recommendation of the buyout offer reflects their belief in the fairness of the terms. EnTrust Global’s offer includes a nearly 30 percent premium over the stock’s closing price on December 19, and a 17 percent premium compared to the 30-day weighted average. Analysts have noted that while the valuation may not be exceptionally high, it is considered fair given the current market conditions. This deal provides shareholders with an opportunity for realization, marking another significant chapter in Belships’ long history.
Moreover, the backing from shareholders, including board members and executive management, who have committed over 61 percent of the shares, indicates strong support for the transaction. EnTrust aims to acquire 90 percent of the shares, after which it will make a mandatory offer for the remaining shares. This strategic move positions both companies for future growth and stability in the maritime sector.
EnTrust Global’s Maritime Ambitions
EnTrust Global, through its Blue Ocean maritime investment group, is poised to expand its footprint in the dry bulk shipping sector. With over $5 billion in managed assets and capital commitments in maritime investments, EnTrust sees this acquisition as a significant opportunity. The firm aims to leverage Norway’s strategic position as a maritime hub to enhance its operations in the dry bulk shipping space.
The Blue Ocean Strategy focuses on building a dedicated team with extensive experience in maritime investments. This team is expected to drive the growth of Belships and its fleet, which currently consists of 29 vessels, with an additional 12 under construction. The latest addition to the fleet, the Belgrace, showcases the company’s commitment to versatility and compliance with upcoming environmental regulations.
Belships also holds a 67 percent stake in Norwegian Bulk Carriers AS, a global dry bulk operator previously known as Lighthouse Navigation. The company’s decision to exit its ship management business in 2023, outsourcing operations to UK-based V.Group, reflects a strategic shift towards focusing on core competencies. This move, along with the buyout offer, positions Belships for a promising future under EnTrust’s management.
The voluntary offer for Belships is expected to launch by January 24, 2025, and will run for a minimum of 20 business days, with the possibility of extension until March 31, 2025. This timeline allows for a smooth transition and sets the stage for future growth in the maritime sector.
