Dry Bulk Stocks Sail Higher On Consolidation News (OCNFD, DRYS, BALT, FREE, DSX, EXM, SBLK, GNK)
Shares of dry bulk shipping firm OceanFreight (OCNFD) are surging 76% after rival DryShips (DRYS) offered to acquire the company for $118 million in cash and stock, valuing OceanFreight at $19.85 a share, more than double where the stock closed on Monday. News of industry consolidation is helping the Dry Bulk Shipping Stocks Index to a 0.6% gain.
DryShips is offering $11.25 in cash and 0.52326 of a share of its drilling unit Ocean Rig UDW, for each share of OceanFreight, Reuters reported. The deal is expected to close in the fourth quarter. Through the acquisition of OceanFreight, DryShips will boost its large-ship fleet size by four capesize and two panamax vessels. Those ship classes are used to transport commodities such as coal and iron ore. Capesize ships are the industry’s largest vessels.
Capesize ships are currently valued at $20 million while panamax vessels are currently priced at $16 million, according to Reuters.
While DryShips is lower by 1% on the news, Baltic Trading Limited (BALT) is higher by 7% and FreeSeas Inc. (FREE) is soaring 9%. Diana Shipping (DSX), Excel Maritime Carriers (EXM) and Star Bulk Carriers (SBLK) are all up 1%. Genco Shipping & Trading (GNK) is the Index laggard today with a 6% decline.
Investors can track the Dry Bulk Shipping Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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