Bunker Supplier Delta Energy's Parent Firm to Be Listed Company After Merger
The deal is expected to close in the first quarter of 2023. File Image / Pixabay
Delta Corp Holdings Limited, the parent company of marine fuel supplier Delta Energy, is set to become a publicly listed company after a merger with US-based Coffee Holding Co.
Delta Corp and Coffee Holding will merge into a new company incorporated in the Cayman Islands under the name Delta Corp Holdings Limited.
Coffee Holding is listed on the Nasdaq, and it is expected that the new firm will continue in that regard. The firm is a coffee trading company founded in 1971.
The vast majority of bunker suppliers are not listed companies, apart from World Fuel Services and Cockett Group. The listing will bring Delta new public scrutiny as well as regulatory costs.
The deal is expected to close in the first quarter of 2023, subject to approvals. Mudit Paliwal will remain CEO of Delta, while Coffee Holding's management will remain in place as a wholly-owned subsidiary of the new firm.
"Delta is excited to reach an agreement with Coffee Holding for the proposed transaction, which I believe will provide substantial benefits to all stakeholders of Delta and Coffee Holding," Paliwal said in the statement.
"Since our founding in 2019, Delta has experienced rapid growth in revenues and profitability and is now a leading global logistics provider to many of the world's top natural resource, industrial, and energy businesses.
"I am proud to say this has been achieved through our focus on customer service and innovation backed by a strong leadership team with decades of experience.
"The transaction will enable us to accelerate expansion of our business and enter new markets that have synergies with our core businesses.
"This includes a broadening of our energy transition, sustainability, and environmental stewardship related service offerings."