DRYSHIPS
Cancels the acquisition of 4 Panamax drybulk carriers
DEC, 10.2008
DryShips, listed in Nasdaq (George Economou – Chairman & Chief Executive Officer), a global provider of marine transportation services for drybulk cargoes, agreed to cancel the previously declared acquisition of 4 Panamax dry bulk carriers, which was announced on July 3 2008, from companies beneficially owned by George Economou.
The aggregate purchase price of USD 400m would have represented a significant cash outflow from the company’s cash reserves given that the company had not obtained bank financing for the acquisition.
As part of the agreement, the selling companies will retain the deposits totaling USD 55m for the 4 vessels, comprised of a 75,228 dwt Panamax vessel built in 2008, a 75,204 dwt Panamax vessel built in 2007, a 75,000 dwt Panamax vessel under construction in China (scheduled to be delivered during the 4th Q of 2008) and a 75,000 dwt Panamax vessel under construction in China (scheduled to be delivered during the 1st Q of 2009).
Moreover, DryShips Inc. has entered into an agreement with the selling companies of the above vessels, providing DryShips Inc. with the exclusive option to purchase the abovementioned 4 Panamax dry bulk carriers on an en bloc basis at a fixed purchase price of USD160m. The exclusive purchase option granted to DryShips Inc. by the seller will terminate on December 31, 2009.
In consideration of the cancellation of the acquisitions and the exclusive purchase option granted to the company, DryShips Inc. has paid to each of the selling companies an additional fee in cash amounting on average to USD 6.25m per vessel.
