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日本海事新聞ニュース Japan Maritime Daily Jan 20, 2025 (Mon)

‌【Current of Japanese shipowners】Who will be the ultimate winner of M&A? Belships acquired by US investment firm

　On December 19. The last major shipping M&A (merger and acquisition) of 2024 was announced just bef ・・・続きはログインして下さいnext %E3%80%80On+December+19.+The+last+major+shipping+M%26A+%28merger+and+acquisition%29+of+2024+was+announced+just+before+Christmas.+%3Cbr%3E%E3%80%80A+trading+company+official+spoke+with+a+sigh.+%3Cbr%3E%E3%80%80%E2%80%9CIt+appears+that+an+affiliate+of+the+US+fund+EnTrust+Global+has+decided+to+acquire+Norwegian+shipowner+and+operator+Belships%2C%E2%80%9C+said+a+shipping+division+of+a+trading+company.+%3Cbr%3E%E3%80%80%E2%96%A0+Acquire+42+ships+at+once+%3Cbr%3E%E3%80%80EnTrust+has+launched+a+tender+offer+to+shareholders+of+Belships%2C+which+is+listed+on+the+Oslo+Stock+Exchange%2C+for+20.5+Norwegian+kroner+per+share.+The+total+amount+of+the+tender+offer+is+expected+to+be+5.182+billion+Norwegian+kroner+%28approximately+72+billion+yen%29.+Through+the+acquisition%2C+it+will+acquire+Belships%E2%80%99+Ultramax+fleet+of+42+ships+%28including+12+new+ships+on+order%29+in+one+go.+%3Cbr%3E%E3%80%80In+recent+years%2C+M%26A+in+the+shipping+industry+has+become+commonplace.+%3Cbr%3E%E3%80%80How+can+we+maintain+the+fleet+size+that+increased+during+the+economic+boom%3F+This+is+a+constant+problem+for+shipowners%2C+both+in+Japan+and+overseas.+%3Cbr%3E%E3%80%80Among+the+shipowners%2C+the+Greek+shipowners+remain+family+businesses+but+have+recruited+several+people+from+major+brokers%2C+financial+institutions%2C+and+traders%2C+and+are+simulating+a+%E2%80%9Ccorporate+management%E2%80%99%E2%80%99+model.+%3Cbr%3E%E3%80%80In+fact%2C+Greek+shipowners+Latsco+and+Ionic+have+executives+with+backgrounds+in+major+shipping+brokers+and+finance.+%3Cbr%3E%E3%80%80On+the+other+hand%2C+with+a+few+exceptions%2C+the+majority+of+Japanese+shipowners+are+%E2%80%9Cfamily-run%E2%80%9C+businesses.+They+bring+relatives+into+the+company+and+start+developing+them+from+there.+%3Cbr%3E%E3%80%80Of+course%2C+this+does+not+apply+to+all+Japanese+shipowners.+There+are+many+excellent+family-run+companies+that+have+an+entrepreneurial+mindset+because+their+sons+have+worked+for+major+trading+companies+or+shipping+companies%2C+gained+experience+there%2C+and+then+returned+to+their+own+company.+%3Cbr%3E%E3%80%80However%2C+overall%2C+there+is+a+strong+impression+that+it+is+a+group+that+is+dominated+by+an+inner+circle.+%3Cbr%3E%E3%80%80An+overseas+operator+speaks.+%3Cbr%3E%E3%80%80%E2%80%9CDoing+business+with+Japanese+shipowners+is+really+difficult.+The+important+thing+for+them+is+not+whether+it+is+rational%2C+but+whether+we+can+understand+each+other+as+human+beings.+Simply+put%2C+it+is+a+matter+of+whether+they+like+it+or+not.%E2%80%9C+%28European+operator+leader%29+%3Cbr%3E%E3%80%80Will+the+acquisition+of+Belships+be+successful%3F+%3Cbr%3E%E3%80%80%E2%96%A0+Results+after+7+years+%3Cbr%3E%E3%80%80This+is+not+the+first+time+that+the+Teigen+family%2C+Belships%E2%80%99+largest+shareholder%2C+has+sold+its+shares+in+a+dry+bulk+shipping+company.+%3Cbr%3E%E3%80%80In+2004%2C+the+Teigen+family+sold+its+shares+in+Thoresen+Thai+Agencies%2C+a+Thailand-based+company+that+owned+and+operated+dry+bulk+carriers.+At+the+time%2C+the+company%E2%80%99s+largest+shareholder%2C+the+Teigen+family%2C+sold+about+6.9%25+of+its+shares+for+approximately+%2442+million%2C+reducing+its+ownership+stake+to+3%25.+%3Cbr%3E%E3%80%80The+shipping+industry+then+experienced+a+major+downturn+following+the+Global+Financial+Crisis%2C+causing+freight+rates+to+plummet.+%3Cbr%3E%E3%80%80Although+no+one+knows+what+the+future+outlook+for+the+shipping+market+will+be%2C+there+is+currently+an+uneasy+atmosphere+in+the+shipping+industry.+%3Cbr%3E%E3%80%80Although+the+dry+bulk+market+has+a+low+number+of+orders+for+new+ships%2C+it+is+unclear+how+it+will+be+affected+by+the+negative+impact+of+the+excess+capacity+of+container+ships+that+will+be+completed+in+large+numbers+in+the+future.+%3Cbr%3E%E3%80%80Belships%E2%80%99+board+of+directors+has+recommended+that+the+company%E2%80%99s+shareholders+accept+the+tender+offer.+Since+EnTrust+Global+made+an+acquisition+proposal+in+December+last+year%2C+Belships%E2%80%99+largest+shareholder%2C+Director+Frode+Teigen+and+other+management+members%2C+have+reportedly+decided+to+accept+the+tender+offer+for+their+total+of+61.23%25+of+Belships+shares.+%3Cbr%3E%E3%80%80The+average+age+of+the+Belships+fleet+is+three+years%2C+and+most+of+the+ships+are+built+in+Japan.+Of+the+30+existing+ships%2C+21+are+chartered+from+Japanese+shipowners.+%3Cbr%3E%E3%80%80The+reason+why+shipping%2C+especially+dry+bulk+carriers%2C+face+financial+difficulties+is+due+to+time+charter+contracts.+%3Cbr%3E%E3%80%80In+the+past%2C+the+main+reason+for+the+losses+of+Sanko+Line%2C+which+went+bankrupt+around+the+time+of+the+Global+Financial+Crisis%2C+and+Daiichi+Chuo+Kisen%2C+which+faced+financial+difficulties%2C+was+not+their+own+ships+but+time+charter+contracts.+%3Cbr%3E%E3%80%80If+necessary%2C+a+company+can+sell+its+own+ships+at+a+loss%2C+but+with+a+time+charter+contract%2C+it+cannot+sell+them%2C+and+a+penalty+will+be+incurred+if+the+contract+is+terminated+before+the+deadline.+Once+market+conditions+fall%2C+time+charter+contracts+%E2%80%9Csnowball+into+losses%2C%E2%80%9C+according+to+a+shipping+executive.+%3Cbr%3E%E3%80%80No+one+knows+whether+the+acquisition+of+Belships+will+be+successful+or+not.+EnTrust%2C+with+total+assets+of+over+%2415+billion+%28approximately+2.35+trillion+yen%29%2C+would+also+take+into+account+a+history+of+shipping+M%26A.+%3Cbr%3E%E3%80%80The+fund%E2%80%99s+purpose+is+investment.+%3Cbr%3E%E3%80%80A+trading+company+insider+said%2C+%E2%80%9CWhether+investment+companies+generally+adopt+a+policy+of+%E2%80%99growing+together%E2%80%99+with+the+acquired+company%2C+like+ORIX+did+when+it+acquired+Santoku+Senpaku%2C+will+depend+on+the+situation%E2%80%9C+%28shipping+department%29.+%3Cbr%3E%E3%80%80Could+it+be+that+the+Teigen+family+ended+up+selling+Belships+in+anticipation+of+a+dry+recession+after+2025%3F+%3Cbr%3E%E3%80%80Or+will+it+result+in+a+highly+competitive+fleet+being+sold+to+investment+funds%2C+which+could+then+sell+it+on+the+secondhand+vessel+market%3F+%3Cbr%3E%E3%80%80Investment+companies+generally+have+seven+years+to+repay+their+investments+to+investors.+It+will+be+some+time+before+the+results+of+this+investment+become+clear%2C+and+it+will+depend+on+future+shipping+market+conditions+and+EnTrust%E2%80%99s+management+of+Belships.+%3Cbr%3E%28Japanese+ship+owners+coverage+team%29+%3Cbr%3E%3D+Posted+every+other+Monday+%3Cbr%3E%3Cbr%3E%3Cbr%3E%3Cbr%3EDisclaimer%3A+The+English+translations+provided+through+this+service+are+the+result+of+translations+made+by+The+Japan+Maritime+Daily+or+automatically+and+mechanically+translated+by+The+Japan+Maritime+Daily+using+an+automated+translation+system+provided+by+a+third+party+after+certain+processing+of+the+Japanese+content+licensed+by+the+third+party.+In+terms+of+the+English+translation%2C+The+Japan+Maritime+Daily+and+MarineNet+Co.%2C+Ltd.+make+no+warranty+or+burden+of+any+kind%2C+express+or+implied%2C+including+its+accuracy%2C+reliability%2C+validity+or+fitness+for+a+particular+purpose.+MarineNet+Users+should+fully+understand+that+this+service+uses+an+automated+translation+system+that+automatically+and+mechanically+recognizes+and+analyzes+information+and+produces+results.+The+users+should+understand+the+above+conditions+before+using+this+service.%3Cbr%3E%3Cbr%3E%E5%85%8D%E8%B2%AC%E4%BA%8B%E9%A0%85%EF%BC%9A%E3%81%93%E3%81%AE%E3%82%B5%E3%83%BC%E3%83%93%E3%82%B9%E3%82%92%E4%BB%8B%E3%81%97%E3%81%A6%E6%8F%90%E4%BE%9B%E3%81%95%E3%82%8C%E3%82%8B%E8%8B%B1%E8%A8%B3%E3%81%AF%E3%80%81%E6%97%A5%E6%9C%AC%E6%B5%B7%E4%BA%8B%E6%96%B0%E8%81%9E%E3%81%8C%E4%BD%9C%E6%88%90%E3%81%99%E3%82%8B%E3%81%8B%E3%80%81%E5%8F%88%E3%81%AF%E3%80%81%E7%AC%AC%E4%B8%89%E8%80%85%E3%81%8B%E3%82%89%E4%BD%BF%E7%94%A8%E8%A8%B1%E8%AB%BE%E3%82%92%E5%8F%97%E3%81%91%E3%81%9F%E6%97%A5%E6%9C%AC%E8%AA%9E%E3%81%AE%E3%82%B3%E3%83%B3%E3%83%86%E3%83%B3%E3%83%84%E3%82%92%E3%80%81%E6%97%A5%E6%9C%AC%E6%B5%B7%E4%BA%8B%E6%96%B0%E8%81%9E%E3%81%8C%E4%B8%80%E5%AE%9A%E3%81%AE%E5%87%A6%E7%90%86%E3%82%92%E8%A1%8C%E3%81%A3%E3%81%9F%E4%B8%8A%E3%81%A7%E3%80%81%E7%AC%AC%E4%B8%89%E8%80%85%E3%81%8C%E6%8F%90%E4%BE%9B%E3%81%99%E3%82%8B%E8%87%AA%E5%8B%95%E7%BF%BB%E8%A8%B3%E3%82%B7%E3%82%B9%E3%83%86%E3%83%A0%E3%82%92%E5%88%A9%E7%94%A8%E3%81%97%E3%81%A6%E8%87%AA%E5%8B%95%E7%9A%84%E3%83%BB%E6%A9%9F%E6%A2%B0%E7%9A%84%E3%81%AB%E7%BF%BB%E8%A8%B3%E3%81%97%E3%81%9F%E7%B5%90%E6%9E%9C%E3%81%A7%E3%81%82%E3%82%8A%E3%80%81%E6%97%A5%E6%9C%AC%E6%B5%B7%E4%BA%8B%E6%96%B0%E8%81%9E%E3%80%81%E3%83%9E%E3%83%AA%E3%83%B3%E3%83%8D%E3%83%83%E3%83%88%E3%81%AF%E3%80%81%E5%BD%93%E8%A9%B2%E8%8B%B1%E8%A8%B3%E3%81%AB%E9%96%A2%E3%81%97%E3%81%A6%E3%80%81%E3%81%9D%E3%81%AE%E6%AD%A3%E7%A2%BA%E6%80%A7%E3%80%81%E4%BF%A1%E9%A0%BC%E6%80%A7%E3%80%81%E5%A6%A5%E5%BD%93%E6%80%A7%E5%8F%8A%E3%81%B3%E7%89%B9%E5%AE%9A%E7%9B%AE%E7%9A%84%E3%81%B8%E3%81%AE%E9%81%A9%E5%90%88%E6%80%A7%E3%82%92%E5%90%AB%E3%82%81%E3%80%81%E6%98%8E%E7%A4%BA%E5%8F%88%E3%81%AF%E9%BB%99%E7%A4%BA%E3%81%AB%E3%82%82%E3%80%81%E3%81%84%E3%81%8B%E3%81%AA%E3%82%8B%E4%BF%9D%E8%A8%BC%E3%82%82%E3%81%97%E3%81%BE%E3%81%9B%E3%82%93%E3%80%82%E3%83%9E%E3%83%AA%E3%83%B3%E3%83%8D%E3%83%83%E3%83%88%E3%83%A6%E3%83%BC%E3%82%B6%E3%83%BC%E3%81%AF%E3%80%81%E3%81%93%E3%81%AE%E3%82%B5%E3%83%BC%E3%83%93%E3%82%B9%E3%81%8C%E3%80%81%E8%87%AA%E5%8B%95%E7%9A%84%E3%81%8B%E3%81%A4%E6%A9%9F%E6%A2%B0%E7%9A%84%E3%81%AB%E6%83%85%E5%A0%B1%E3%82%92%E8%AA%8D%E8%AD%98%E3%83%BB%E5%88%86%E6%9E%90%E3%81%97%E3%81%A6%E7%B5%90%E6%9E%9C%E3%82%92%E5%87%BA%E5%8A%9B%E3%81%99%E3%82%8B%E8%87%AA%E5%8B%95%E7%BF%BB%E8%A8%B3%E3%82%B7%E3%82%B9%E3%83%86%E3%83%A0%E3%82%92%E4%BD%BF%E7%94%A8%E3%81%97%E3%81%9F%E3%82%B5%E3%83%BC%E3%83%93%E3%82%B9%E3%81%A7%E3%81%82%E3%82%8B%E3%81%93%E3%81%A8%E3%82%92%E5%8D%81%E5%88%86%E3%81%AB%E7%90%86%E8%A7%A3%E3%81%97%E3%81%9F%E4%B8%8A%E3%81%A7%E3%80%81%E3%81%93%E3%81%AE%E3%82%B5%E3%83%BC%E3%83%93%E3%82%B9%E3%82%92%E5%88%A9%E7%94%A8%E3%81%99%E3%82%8B%E3%82%82%E3%81%AE%E3%81%A8%E3%81%97%E3%81%BE%E3%81%99%E3%80%82%3Cbr%3E