Euroseas Ltd., a leading owner and operator of container carrier vessels, has made several important announcements, according to Euroseas.
Charter Extension and Spin-Off
- Charter Extension: Euroseas announced an extension to the charter of its older feeder containership, M/V Aegean Express, for a period of 10 to 12 months at a daily rate of $16,700.
- Spin-Off of Older Vessels: The company intends to spin off three older vessels, including M/V Aegean Express, into a separate company named Euroholdings Ltd.
- Planned Listing: Euroholdings has applied for listing on the NASDAQ Capital Market.
- Shareholder Distribution: Euroseas will distribute 100% of Euroholdings’ shares to its existing shareholders.
- Conference Call: A conference call is scheduled for January 7, 2025, to discuss the proposed spin-off in more detail.
Aristides Pittas, Chairman and CEO of Euroseas commented: “We are pleased to announce the extension of the charter of Aegean Express and our plan to spin-off our three elder vessels in a separate company, Euroholdings Ltd., which has applied for listing on NASDAQ. The spin-off of our three older vessels into a separate entity and the distribution of all shares to our common shareholders, the only shareholder class in our capital structure, enables us to maximize the value of the older vessels in our fleet and shareholder returns by creating a new platform to capture new opportunities following a different strategy from Euroseas.
Euroholdings shares represent only about 5% of our Euroseas’ NAV estimate, so the spin-off is not expected to have any material impact on Euroseas and its overall strategy. At Euroseas, we plan to continue taking advantage of growth opportunities as they may present themselves while continuing our high quarterly dividend distributions based on our strong capital structure and forward charter cover. Furthermore, Euroseas intends to continue with its stated strategy of modernizing its fleet as we have demonstrated over the last couple of years by placing orders for 11 newbuilding vessels, seven of which have been delivered in 2023 and 2024, two are slated for delivery in early January 2025 and the remaining two in 2027…”
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Euroseas
