Knightsbridge Shipping and Golden Ocean Group, two separately-listed shipowners in John Fredriken’s group of companies, have struck a deal to merge into a single bulker titan. The combination will see the two outfits’ 72 vessels and newbuildings join under Knightsbridge’s New York-listed legal entity, which will then take on Golden Ocean’s name. "By combining Knightsbridge and Golden Ocean we seek to create a company with a unique fleet and strong balance sheet and build one of the world's leading dry bulk shipping companies,” said Knightsbridge chief executive officer and chairman Ola Lorentzon. “With the current weakness in the dry bulk market, we believe there will be attractive consolidation opportunities going forward,” said Lorentzon. “Our ambition is to be a clear market leader both from a financial and operational perspective. Upon an expected recovery of the dry bulk market and as newbuilds are brought into the fleet, we believe the combined company will generate significant cash flow.” The combined entity will be listed both on the Nasdaq stock exchange and the Oslo Stock Exchange. Golden Ocean is currently listed in Oslo and Singapore.
The expansion of the Fredriksen bulker fleet will not stop here though.
Frontline 2012, the main shareholder of Knightsbridge with 58%, said it believes the new operation is "uniquely positioned to benefit from an expected recovery of the dry bulk market." and added: "The combined company will have a unique fleet and strong balance sheet and be one of the world's leading dry bulk shipping companies.
Golden Ocean demerged from Fredriksen’s key company, Frontline, in 2004 and listed on the Oslo Stock Exchange that year.
Knightsbridge was set up in 1996 and sold its tankers in 2012 and 2013.
The deal will again see Fredriksen sport the largest capesize fleet on Wall Street with 44.
Dry Bulk Shipping News - Shipbroker Notes