Gram Car Carriers agrees to $700 Million acquisition by MSC subsidiary

GENEVA : Gram Car Carriers ASA (GCC) has announced the acceptance of a voluntary cash offer from SAS Shipping Agencies Services Sàrl (SAS), a wholly-owned subsidiary of MSC Mediterranean Shipping Company, the world’s largest container shipping line.

The offer involves the acquisition of all outstanding shares of GCC, a Norway-based provider of pure car and truck carrier tonnage.

The deal, first announced in April, is valued at approximately USD $700 million.

The offer represents the first stage in the SAS’s plan to acquire all issued and outstanding shares of GCC. If the SAS acquires and holds 90% or more of all the company’s shares, they will have the right to carry out a compulsory acquisition of the remaining shares. Alternatively, if SAS owns more than one third but less than 90% of the shares after the offer is completed, a mandatory offer for the remaining shares will be required, in accordance with Chapter 6 of the Norwegian Securities Trading Act.

The offer period commenced on Monday and will expire at 16:30 hours (CEST) on 26 June 2024.

The offer price stands at NOK 263.69 per share in cash, subject to adjustments. The offer price represents a significant premium to the closing trading price for the shares on 23 April 2024, the last trading day prior to the announcement of the transaction agreement and the offer.

The acquisition has garnered support from shareholders, including board members and executive management of GCC, who collectively own about 56.20% of the shares and have undertaken to accept the offer under certain terms and conditions. The company’s largest shareholders have also given irrevocable undertakings to accept the offer.

GCC, the world’s third-largest tonnage provider within the Pure Car Truck Carriers (PCTCs) segment, owns 17 vessels across the Distribution, Mid-size and Panamax segments. The company is renowned for providing vessels and logistics solutions that ensure safe and efficient shipment of vehicles for a network of major global and regional PCTC operator.

The Federal Maritime Commission (FMC) has successfully negotiated compromise agreements with three companies, collectively resulting in civil penalty payments exceeding $2.3 million. The agreements are the outcome of extensive investigations…