- BRAEMAR is set to integrate Hamburg ship finance unit Braemar Naves into its core London-based shipbroking activities.
- The listed company’s new chief executive said his predecessor overpaid for the acquisition in 2017.
- Deferred consideration still owed to the previous owners has been shunted back for more than four years.
A Lloyds List news report by David Osler highlights that Braemar is overpaid for Naves acquisition, according to the new chief.
Deferred consideration
Deferred consideration still owed to the previous owners has been shunted back for more than four years, with the €2.9m ($3.5m) due for payment in the next 12 months rescheduled to be paid no earlier than September 2025, and some €750,000 of that to be satisfied with new equity, James Gundy added.
Mr Gundy’s predecessor, James Kidwell, purchased what was then Naves Corporate Finance as a diversification play, paying €24m up front, with earn out terms that could take the final price up to €35m.
Strong price
Asked if the company has paid too much at the time, Mr Gundy said: “Probably, yes. It was a strong price.”
However, Naves is securing 20%-plus margins on what it does and will work well as part of the shipbroking team, he insisted.
Gundy excited about the new job
Mr Gundy has high hopes of a vintage year ahead if the predicted post-pandemic boost to world trade does emerge.
“It’s not hard to sit here and say the world is going to get better. All the futures curves are pointing upwards,” he said. “Being a very diversified business, there’s a very good chance we will hit the jackpot, with all markets going up at the same time. I’m confident for the third and fourth quarters of the year.”
More generally, he professed excitement at taking over the top job.
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Source: Lloyds List
