MSC Makes $700m Gram Car Carriers Takeover Bid

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  • The board of Gram Car Carriers (GCC) have unanimously recommended to shareholders a takeover bid from MSC through its subsidiary SAS Shipping Agencies.
  • The offer of NOK263.69 per share in cash has been made via MSC subsidiary Shipping Agencies Services (SAS) and represents a premium of 28.3% to GCC’s stock price on April 23.

MSC is joining its peers in tapping into the red-hot car carrier market. The Swiss-Italian container shipping leader is bidding NOK7.64 billion (US$700 million) for Norway’s Gram Car Carriers (GCC), reports Container News.

MSC enters Gram Car Carriers takeover

MSC made the bid through its subsidiary, SAS Shipping Agencies Services (SAS). SAS has put forward a cash offer for all shares in Gram Car Carriers for a total of NOK7.643bn ($700m) or NOK263.69 per share. Gram Car Carriers said the offer represented a 17.5% premium over its highest ever closing price of NOK232.0 adjusted for dividends to date, and a 28.3% premium over its closing price on 23 April.

SAS said it plans to continue GCC operations under the same name and organisation; the acquisition of GCC is a bid to expand MSC’s position in car transportation where it currently operates two 6,700 ceu car carriers. GCC owns 18 Pure Car and Truck Carriers (PCTCs).

The bid has the support of the board and executive management of the company who own around 55.85% of shares, excluding company treasury shares.

Ivar Myklebust, Chair of the Board, said: “Today’s voluntary offer by one of the world’s leading maritime groups, is a validation of the unique position GCC has built as a leading car shipping tonnage provider and the long-term commitment put in by the entire team. The board is satisfied that the offer represents a fair valuation of GCC, as is also reflected in the recommendation to shareholders to accept the offer.”

The offer will require 90% approval from shareholders by the end of the 20 business day offer period, which will start by 31 May 2024 at the latest, with an option for the offeror to extend the period to 10 weeks.

The deal will be subject to regulatory approval.

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Source: Container News