Germany’s Ernst Russ is boosting its interest in a portfolio of twelve feeder containerships to become a majority owner.
The Hamburg-based company has decided to acquire a further 10% stake in Fernando Feeder Parent GmbH & Co. KG and increase its ownership to 55% in eleven boxships of 800 teu and one 1,800 teu vessel. The transaction is planned for the end of 2021.
The investment, which was previously accounted by applying the equity method, will be fully included in the consolidated financial statements of Ernst Russ as of the acquisition date. The company estimated that for the upcoming financial year, the vessel portfolio would generate revenues in a range of €41m ($46m) to €44m ($49.6m).
“Due to their size, these vessels can be deployed very flexibly and are therefore in great demand with well-known charterers in the feeder service. The majority of the vessels have an ice class, which enables them to be used in Baltic Sea traffic,” Ernst Russ said in a release.
Ernst Russ currently has a majority interest in 18 ships, including 15 containerships, a pair of MMPs, and one bulker.