Uni-Asia Group EGM: Shareholders Approve Strategic Fleet Expansion via M/V Trident Star Acquisition

Key Highlights from the Extraordinary General Meeting (EGM)

• Approval of Significant Vessel Acquisition: Shareholders overwhelmingly approved the acquisition of the M/V Trident Star, a 58,000 dwt Baltic Supramax vessel, for US\$18.4 million. The purchase will be executed through Diamond Bulkship S.A., a special purpose vehicle (SPV) in which Uni-Asia holds a 65.1% stake.
• Majority Stake Structure with Co-Investors: The transaction includes four co-investors, a larger number than in recent deals, reflecting the popularity and strategic appeal of the vessel type.
• Strong Shareholder Support: The resolution passed with 99.98% approval, indicating robust confidence in the board’s strategy.
• Clear Abstention from Interested Parties: Yamasa Co., Ltd and its associates abstained from voting, in line with interested person transaction rules.

Strategic Implications for Uni-Asia Group

The acquisition of M/V Trident Star is part of Uni-Asia’s medium-term business transformation plan. The company is actively replacing older, smaller vessels (13-15 years old, sub-30,000 dwt) with newer, more efficient, and market-preferred ships. This move is expected to:

• Enhance Fleet Quality and Earnings: The addition of a modern, in-demand vessel is poised to generate higher charter income, thus strengthening profitability and the potential for increased dividends to shareholders.
• Expand Fleet Efficiently: By utilizing majority ownership structures with co-investors, Uni-Asia can stretch its capital and acquire more vessels without full equity outlay. The company has added four vessels in 2025 under this model, versus 100% ownership in their existing five 38,000 dwt ships.
• Consolidate Financial Performance: Despite not owning 100% of these new vessels, their full charter income is consolidated into the Group’s profit and loss, supporting a robust earnings outlook for 2026 and beyond.
• Maintain Operational Flexibility: The strategic use of SPVs and co-investment structures allows Uni-Asia to swiftly adapt to market cycles and asset opportunities.

Background and Rationale for the Acquisition

Uni-Asia has a long-term investment strategy that includes co-investment in vessel newbuildings with major shareholders. Over the past 7-10 years, this has resulted in a portfolio of seven vessels where Uni-Asia holds an 18% stake. The current acquisition is the fourth vessel being taken over from these SPCs, as stipulated by their agreements which require asset disposal or internal acquisition after a certain holding period.

Management emphasized that with newbuilding prices currently high, acquiring well-maintained, second-hand ships like the M/V Trident Star is a prudent interim measure. This not only allows the company to bridge to future newbuilding opportunities but also secures ongoing cash flow and profit generation.

Shareholder Q&A: Key Insights

During the EGM, shareholders inquired about the rationale for the acquisition and the involvement of four co-investors. The board clarified that the vessel’s popularity and standard design attracted multiple partners, and that the acquisition is directly aligned with the company’s strategy to renew and grow its fleet in a capital-efficient manner.

The company confirmed that the overall approach is designed to maximize shareholder value through higher earnings, prudent capital allocation, and readiness to seize market opportunities as they arise.

Poll Results and Resolution Passed

• Votes For: 17,250,396 (99.98%)
• Votes Against: 4,200 (0.02%)
• Total Votes Cast: 17,254,596

The board is authorized to proceed with the acquisition and to undertake all necessary actions to complete the transaction.

What Shareholders Need to Know (Potentially Price Sensitive)

• The acquisition signals Uni-Asia’s intention to aggressively renew and expand its fleet, which could drive higher future earnings and potentially increase dividends.
• The capital-efficient structure (majority ownership with co-investors) enables further acquisitions without overstretching equity, which could support further growth and resilience.
• Continued focus on well-maintained second-hand vessels may provide an earnings bridge while newbuilding prices remain elevated, positioning the company advantageously for future market upturns.
• The consolidation of charter income from majority-owned vessels into the Group’s P&L enhances the company’s reported financial performance, a factor investors should watch in upcoming results.

Conclusion

The decisive approval of the M/V Trident Star acquisition marks a significant milestone in Uni-Asia Group’s strategic fleet renewal and expansion. The move is expected to enhance earnings, improve capital efficiency, and support long-term shareholder value. Investors should monitor subsequent updates on fleet performance, new acquisitions, and the company’s ability to capitalize on evolving market conditions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisers before making investment decisions. The author and publisher are not responsible for any losses incurred from reliance on the information provided herein.

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