[130217.EN.BIZ] Rickmers Sells Breakbulk/Project Carrier to ZEABORN Chartering

HAMBURG-BASED Rickmers Group has reached agreement to sell its breakbulk and project cargo carrier, Rickmers-Linie, to fellow German ZEABORN Chartering, accelerating the consolidation of the breakbulk shipping sector.

Rickmers is also selling MCC Chartering and Contracting, which focuses on bunker purchasing and chartering in the breakbulk segment, to ZEABORN Chartering.

The execution of the deal was subject to the approval of Rickmers Group's financing banks and requires antitrust approval. Rickmers did not give financial details of the transaction, IHS Media reported.

ZEABORN, which has been building up its multipurpose shipping operations, has acquired the right to use the brand names Rickmers-Linie and Rickmers Line.

The merged entity will have a fleet of 50 multipurpose vessels, with deadweight capacities between 7,500 tonnes and 30,000 tonnes, and a combined lifting capacity of up to 700 tonnes.

"With the growth of our fleet, we were faced with the challenge of building a global organisation. Everyone who knows the shipping industry knows that this is a very challenging task in our time. In this respect, it's a fortune for our development that Rickmers-Linie was available at the right time," said Jan Hendrik Többe, managing partner of ZEABORN.

The sale of Rickmers-Linie will have no impact on the workforce, shipping routes, or the shipping line's tonnage under long-term charter, Rickmers said.

Under the terms of the deal, R C Rickmers will have a minority stake in ZEABORN Chartering via one of his privately owned companies. Following the sale, the Rickmers Group will focus on its maritime assets and maritime services businesses.

The leading German shipowner and ship manager posted sharply reduced earnings and revenue in the first nine months of 2016 due to lower utilisation of its breakbulk and project cargo ships and slumping container charter rates.

The Hamburg-based company's operating result declined 31 per cent to EUR136.8 million (US$146 million) from EUR198.5 million a year earlier, as revenue shrank 15 per cent to EUR373.6 million.

The company has also sold its stake in the financially troubled, Singapore-based container ship charter company Rickmers Maritime Trust.

Source : HKSG.