The maritime fund of Yangzijiang Financial Holding YF8 has entered into a strategic joint venture (JV) with Singapore-based equity investment vehicle, Alpha Omega Marine, to acquire another high-quality, modern and eco-friendly dry bulk vessel.
The vessel, named MV One and Only, comes after the acquisition of MV As One on March 28.
MV One and Only is a 40,000 deadweight tonne (DWT) Handymax vessel that usually transports a wide range of cargoes including minor bulks and grain and coal on short-haul routes. They are said to be valued for their flexibility to operate at smaller ports with limited infrastructure.
The vessel, rated a carbon intensity indicator of ‘A’, is also energy efficient.
“The acquisition of MV One and Only was an opportunistic one, secured at an attractive price that management believes will greatly value-add towards its existing portfolio of maritime vessels,” says Yangzijiang Financial in a statement on June 5.
According to Yangzijiang Financial, the acquisition was made considering a slowing supply of the Handymax and Supramax bulk carrier market. Fleet growth of these vessels are expected to moderate from 3.4% in 2023 to 2.4% by 2025 due to a few factors including lesser new orders due to regulatory uncertainties.
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Demand for the Handymax and Supramax bulk carrier vessels are expected to remain “resilient” supported by minor bulk demand growth of 3.2% to 3.9% for 2023 to 2025, outpacing supply growth of 2024 and 2025, says the group, referring to a Pacific Basin report.
“While the group has the financial resources to acquire the MV One and Only vessel on its own, the partnership with Alpha Omega Marine plays to the complementary strength of both parties, such that both financing and operational risks are greatly mitigated,” explains Yangzijiang Financial.
Yangzijiang Financial’s executive chairman and CEO Ren Yuanlin sees the strategic JV as an “exciting milestone” that aligns with the group’s objective to grow its assets under management (AUM) for its maritime fund.
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“This strategic acquisition also exemplifies our deep industry expertise and network to identify and capitalise on superior opportunities, even in a fiercely competitive market,” adds Ren.
“We are thrilled to unveil our strategic joint venture with Yangzijiang Financial to acquire this premier dry bulk vessel. Our conservative investment approach, combined with highly competitive financing terms from this strategic collaboration, allows us to navigate challenging market conditions while ensuring stability and continued growth,” say Alpha Omega Marine’s managing partners Thanos Pasialis and Vasileios Pateras.
“This acquisition is particularly notable for being secured at competitive levels and off-market, showcasing our strong industry connections and our team's ability to identify and seize superior opportunities in a fiercely competitive market. Committing to such a top-quality asset amidst intense competition underscores our strong advantage and strategic market positioning,” they add.
Shares in Yangzijiang Financial closed 0.5 cents lower or 1.52% down at 32.5 cents on June 5.
