Seacon Shipping Group Holdings Limited has announced a notable acquisition that aligns strategically with its operational goals and enhances its competitive edge. On April 18, 2025, the company's indirect wholly-owned subsidiary entered into a shipbuilding contract to acquire a new vessel at a price of USD 38,340,000.
According to the contract, the vessel, a 63,300 dwt bulk carrier, is expected to be delivered on April 30, 2027, and the payment will be made in five installments based on the ship's construction progress. These payments include an initial USD 7,640,000 upon signing the contract and a final installment of USD 19,240,000 upon delivery.
The Board of Directors emphasized that this acquisition is part of the company's strategy to phase out older vessels and expand its controlled fleet with more modern ships. This expansion is expected to enhance Seacon's ability to meet increased shipping demands and attract larger market participants.
The seller of the vessel, Tsuji Group (Zhoushan) Shipbuilding Co., Ltd., is a reputable shipbuilding company jointly owned by Tsuneishi Corporation and Yangzijiang Shipbuilding (Holdings) Ltd.. The agreement reflects industry standards with competitive pricing derived from similar market offerings, solidifying the deal as sound investment.
Seacon Shipping expects to fund the acquisition using a combination of internal resources and external financing. The Board, including independent non-executive directors, confirms that the deal terms are fair and in shareholders' best interests, supporting both growth and compliance with recent environmental regulations.
The acquisition falls under Chap 14 of the Listing Rules, necessitating announcement and reporting requirements due to the transaction's size, which exceeds 5% but remains below 25% of the highest applicable percentage ratios as per the Listing Rules 14.07.