Oslo-based MPC Container Ships has sold two joint venture-owned vessels, Cimbria and Cardonia, for a total price of $42.5 million. The vessels, with a capacity of 2,800 teu, were built in 2002 and 2003, respectively, and are scheduled for handover by the end of July 2023.
Both vessels are currently on time-charter contracts, expiring at the earliest in July 2025 for the vessel Cardonia and in October 2025 for the vessel Cimbria.
This sale represents the final divestment of joint venture-owned vessels in the company’s fleet. MPCC’s joint venture acquired eight vessels at a total price of $58 million.
During their respective holding periods, the eight vessels also generated around $114 million in Ebitda in total and have since been divested for about $186 million, resulting in an attractive multiple on invested capital, as the company believes.
Constantin Baack, CEO of MPC Container Ships, expressed his satisfaction with the transaction, stating:
“These divestments conclude a successful investment for MPCC, and we would like to extend our sincere appreciation to our joint venture-partner for their excellent collaboration, which was instrumental in achieving this highly positive outcome”.
Baack noted that ”the result of our joint-venture initiative validates our strategy of investing through market cycles, identifying attractive opportunities, implementing effective management, and exiting at favorable prices. We remain committed to continually optimizing our fleet while capitalizing on market opportunities to deliver attractive returns and sustainable long-term shareholder value.”
The use of proceeds from the two vessels sale will be determined by the board of directors after the sales have been concluded.