Seacon Shipping Group Announces Disposal of Two Vessels and Exercise of Purchase Options – Key Details for Investors

Overview

Seacon Shipping Group Holdings Limited (“the Company”, Stock Code: 2409) has announced a significant transaction involving the disposal of two bulk carrier vessels – Seacon Vancouver and Seacon Oslo – for a total consideration of USD 72.7 million, alongside the exercise of purchase options to acquire these vessels from their current owners. The transactions are classified as discloseable under the Hong Kong Listing Rules and are expected to have material financial and strategic impacts on the Group.

Key Transaction Details

• Vessels Involved: Seacon Vancouver and Seacon Oslo, both 48,785 gross tonnage bulk carriers built in 2023.
• Agreements Signed: 23 April 2026 (after trading hours).
• Parties: Sellers are indirect wholly-owned subsidiaries of Seacon Shipping Group; Buyer is Asyad Shipping Company SAOG (ASCO), a public joint stock company in Oman, 80% owned by the Omani government.
• Total Consideration: USD 72.7 million (USD 36.35 million per vessel).
• Delivery Dates: Seacon Vancouver by 10 October 2026; Seacon Oslo by 30 November 2026. The Buyer can cancel if the vessels are not delivered on time.
• Deposit Structure: USD 3.635 million per vessel to escrow within 3 banking days of signing; balance to be pre-positioned before delivery; all funds released upon delivery but no later than 3 banking days after notice of readiness.
• Purchase Options: The vessels are currently under bareboat charters. Seacon intends to exercise purchase options to acquire the vessels before delivering them to the Buyer.
  • Purchase Option Price for Seacon Vancouver: up to USD 19.5 million.
  • Purchase Option Price for Seacon Oslo: up to USD 22 million.

Financial Information and Expected Impact

• 2025 Book Value: Seacon Vancouver: USD 23.89 million; Seacon Oslo: USD 23.91 million.
• Expected Net Asset Value at Delivery: Seacon Vancouver: ~USD 23.3 million; Seacon Oslo: ~USD 23.2 million.
• 2024-2025 Net Profits (Before and After Tax):
  • Seacon Vancouver: USD 1.53 million (2024), USD 1.10 million (2025).
  • Seacon Oslo: USD 1.56 million (2024), USD 1.75 million (2025).
• Estimated Gain on Disposal: ~USD 25.0 million (after tax and expenses) based on the difference between expected proceeds and net asset value of the vessels at delivery. Actual gain subject to audit and completion.
• Use of Proceeds: Financing potential vessel acquisitions and for general working capital.

Strategic Rationale

The Board believes that the transactions are consistent with the Group’s strategy to optimize its vessel fleet and maintain a balanced portfolio. The disposal will bolster working capital, enhance liquidity, and provide funding for new vessel acquisitions, allowing the Company to adapt to market conditions and optimize its fleet profile.

Counterparties and Independence

• Buyer: Asyad Shipping Company SAOG (ASCO), a major Omani ship owner, 80% government owned.
• Current Vessel Owners:
  • Owner A (Bright Vancouver Shipping Limited, Liberia), indirectly owned by AVIC International Leasing Co., Ltd. (PRC SOE).
  • Owner B (Xiang T11 SG International Ship Lease Pte. Limited, Singapore), indirectly owned by Bank of Communications Financial Leasing Co., Ltd., ultimately wholly owned by Bank of Communications Co., Ltd.
• All counterparties are independent of Seacon Shipping and its connected persons.

Listing Rules Implications

• The disposal and exercise of purchase options each constitute discloseable transactions under Chapter 14 of the Listing Rules, as the highest applicable percentage ratios exceed 5% but are less than 25%. They are subject to reporting and announcement requirements, but not to shareholders’ approval.

Key Points for Shareholders and Price-Sensitive Information

• The expected USD 25 million gain from the disposal is material and could positively affect the Company’s financial performance and share value.
• The transactions will strengthen liquidity and improve the Company’s capital position, providing flexibility for future fleet expansion.
• The deal price is above recent market transactions for similar vessels (USD 32–33.3 million), highlighting strong negotiation and strategic timing by management.
• The transactions demonstrate Seacon’s ability to execute fleet optimization strategies and realize value in a competitive market, which could enhance investor confidence.

Board Composition

As of the announcement date, the Board comprises: Executive Directors Mr. Guo Jinkui (Chairman), Mr. Chen Zekai, Mr. He Gang, Mr. Zhao Yong; and Independent Non-Executive Directors Mr. Fu Junyuan, Ms. Zhang Xuemei, Mr. Zhuang Wei.

Conclusion

This transaction is significant for Seacon Shipping Group, both financially and strategically. The realized gain, improved liquidity, and enhanced fleet flexibility are all factors that could positively influence the Company’s share price and market outlook. Investors should closely monitor the completion of these transactions and subsequent capital allocation decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Shareholders and potential investors should refer to the Company’s official announcements and consult with their professional advisers before making any investment decisions.

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