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NEW YORK—Bear
Stearns Cos.’ private-equity arm took a majority stake
in MC Shipping Inc. as part of a deal to buy the entire
maritime transportation company for $284 million.
Investors in Monaco-based MC Shipping, which handles
liquefied petroleum gas, will receive $14.25 in cash for
each share, Bear Stearns Merchant Banking and MC
Shipping said in a statement last week. Bear Stearns is
paying 20 percent more than MC Shipping’s July 27
closing price of $11.91.
Bear
Stearns Merchant Banking, a division of the New
York-based securities firm, oversees almost $5 billion
in capital. Its latest investment fund, MBP III, raised
$2.7 billion. MC Shipping owns 19 vessels and holds
contracts to purchase four more, the companies said in
the statement.
Shares
of MC Shipping rose $2.01, or 17 percent, to $13.92 at
1:18 p.m. in composite trading on the American Stock
Exchange. Through July 27, the stock had climbed 28
percent this year.
Under
the agreement announced today, Navalmar Transportes
Maritimos LDA and Weco-Rederi Holding A/S sold 53
percent of MC Shipping to Bear Stearns Merchant Banking
for the same price of $14.25 a share. MC Shipping
stockholders owning the 47 percent of the company not
owned by Bear Stearns Merchant Banking will be asked to
vote on the sale September 5.
The
agreement includes a so-called go shop provision that
allows MC Shipping’s advisers to solicit rival bids for
the next 35 days. If Bear Stearns Merchant Banking
doesn’t match a new proposal, it agreed to support a bid
that amounts to at least $15 a share, the companies
said. MC shipping would have to pay Bear Stearns
Merchant Banking a fee of $7.75 million if it accepts
another offer.
DnB NOR
Markets advised MC Shipping on the sale, while Milbank,
Tweed, Hadley & McCloy LLP served as legal counsel. HSBC
Holdings Plc and Poten Capital Services LLC advised Bear
Stearns, which used Weil, Gotshal & Manges LLP as its
law firm. (Bloomberg) |
