Canada’s Algoma Central Corporation has sealed a deal with Oldendorff to acquire the German owner’s interest in the CSL International Pool, which includes three self-discharging bulk carriers operating in the pool.
The deal sees Algoma’s interest in the pool increase to around 40%, while picking up handysize bulker Alice Oldendorff and panamax bulkers Harmen Oldendorff and Sophie Oldendorff.
The deal, worth $100m, is expected to close during the second quarter of 2019.
Ken Bloch Soerensen, president and CEO of Algoma, commented: “Increasing our participation in the Pool has been a strategic interest for Algoma for some time and the completion of this transaction is aligned with that intent.
“During 2018, we assumed technical management of our existing Pool ships and opened a new office in Fort Lauderdale with an expanded technical staff. We expect to assume technical management of these three ships seamlessly on closing.”
Algoma said it will fund the transaction primarily from the proceeds of refund guarantees from the cancellation of four shipbuilding contracts with Croatian yard Uljanik.
The sale still leaves Oldendorff with 10 self-unloading bulkers, with an additional two under construction scheduled for delivery in 2021.