Pangaea raises interest in subsidiary NBHC to 66.7%

29 September 2020 (Last Updated September 29th, 2020 11:31)

Pangaea Logistics Solutions has acquired an additional one-third equity interest in Nordic Bulk Holding Company (NBHC), its partially owned subsidiary, from one of the current shareholders.

Pangaea raises interest in subsidiary NBHC to 66.7%
Four post-Panamax dry bulk carriers will be delivered to Pangaea Logistics Solutions next year. Credit: Andres Alvarado / Flickr.

Pangaea Logistics Solutions has acquired an additional one-third equity interest in Nordic Bulk Holding Company (NBHC), its partially owned subsidiary, from one of the current shareholders.

The acquisition will increase Pangaea’s equity interest in NBHC to 66.7%.

Pangaea bought the equity interest for $22.5m, of which $15m will be paid in cash after the closing of the transaction, and the remaining will be paid in three annual payments of $2.5m for three years.

The fleet of NBHC consists of six modern 1-A ice-class Panamax bulk vessels, which are time-chartered to and operated by Nordic Bulk Carriers, a wholly owned subsidiary of Pangaea.

The ships were built at Japan’s Oshima Shipyard.

Pangaea CEO Ed Coll said: “Our additional ownership position in the six ships will provide additional premium earnings to our bottom line and helps to cement our position as the leading worldwide operator of large ice-class ships.

“We also look forward to our four newbuilding 1-A ice-class post-Panamax ships expected to be delivered in 2021.

“This will give us 12 modern and efficient ice-class ships ready to serve our customers' transport and logistics needs in difficult locations with an average fleet age of four years and a total cargo capacity of almost one million metric tonnes.”

Coll added that the ships adhere to the strict regulatory and environmental requirements and the newbuilds will be able to accommodate more cargo with a smaller footprint.

They will feature Tier III engines to meet the highest air standards.

In May last year, Pangaea Logistics Solutions placed an order with Chinese shipbuilder Guangzhou Shipyard International (GSI) for two post-Panamax 95,000dwt dry bulk carriers.

The contract included a clause to place orders for two additional vessels with GSI.