Mediterranean Shipping Co (MSC) has made a significant move in the shipping industry with its irresistible offer to take over Gram Car Carriers (GCC) in a deal valued at NOK 7.6 billion or approximately €760 million. The offer, set at NOK 263.69 per share, presents a lucrative opportunity for shareholders, representing a premium of 28.3% to the closing trading price of GCC shares on April 23, 2024.
Shareholders will get NOK 263.69 per share, which is 28.3% more than the closing price on April 23rd, 2024. Plus, they’ll also receive the Q1 dividend, bringing their total cash payout to NOK 272.69 per share.
The offer is even more attractive when compared to past prices. It’s 33.8%, 28.5%, and 77.7% higher than the average share price over the last 30, 90, and 365 days, respectively, adjusted for dividends. It’s also 17.5% higher than the all-time high share price.
The GCC board and major shareholders, including board members and management, are all behind the deal. They represent over 55% of the company’s shares and have already agreed to sell.
MSC, a major player in shipping and logistics with over 800 vessels and 200,000 employees, is making this acquisition through its subsidiary SAS Shipping Agencies Services Sàrl.
The company plans to keep GCC running as is, under its current name and organization, so customers won’t see any changes.
The offer will be open for at least 20 business days after the official documents are released, and it might be extended. The deal is expected to close in the third or fourth quarter of 2024, as long as certain conditions are met, such as 90% of shareholders accepting the offer, keeping the current management team, and getting regulatory approvals.
Once the deal is done, MSC will delist GCC from the Oslo stock exchange and remove it from trading on the OTCQX Best Market in New York, bringing it under its own umbrella.