World News
Mercator Sells Singapore-Based Dry Bulk Carrier Subsidiary for Three Dollars
Mercator Limited (Mercator) Wednesday announced in an SGX filing that it has sold all 900,850,000 shares of its Singapore-based bulk shipping subsidiary, Mercator Lines (Singapore) Limited (Mercator Lines), for SGD 3 ($2.16) to three private equity investors Bellerophon Holdings Pte Ltd., MIB Investments Private Ltd, and Wroclaw Holdings Ltd.
The buyers, who were noted to be unrelated to Mercator, are said to each be responsible for paying SGD 1 ($0.72) under the deal.
The sale of Mercator's 66.17 percent stake in Mercator Lines is expected to be completed by March 25, with the buyers said to be assuming all associated liabilities.
"Many companies are going through similar situations, especially in the dry bulk segment. Mercator is not alone," a ship finance executive was quoted as saying.
Mercator Lines is reported to carry a debt of about $148 million, and reported a loss of $125 million after tax for the 2015 financial year.
In January, Ship & Bunker reported Mercator's plan to exit Mercator Lines, news that came on the heels of the resignation of Mercator Line's CEO Shalabh Mittal on December 28.
More recently, the judicial manager of Mercator Lines announced that it entered into five separate memoranda of agreement for the sale of five of its bulk carrier vessels.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 655.50 | 2.00 | 808.50 | 4.50 |
| Rotterdam | 619.00 | 0.00 | 789.00 | 8.00 |
| Houston | 628.50 | 7.50 | 812.50 | 1.50 |
| Fujairah | 653.50 | 4.50 | 900.00 | 2.50 |
| Global 20 Ports Average | 672.00 | 0.50 | 885.00 | 7.00 |
| Global 4 Ports Average | 639.00 | 2.50 | 827.50 | 2.00 |
| Global Average Bunker Price | 727.50 | 1.50 | 933.50 | 5.00 |
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