International Shipholding buys into bulk firm

International Shipholding buys into bulk firm    International Shipholding Corp, said it has invested $6.25 million to acquire a 25 percent stake in Oslo Bulk Shipping, a six-party joint venture that contracted in 2008 to build eight new small dry bulk carriers.
   The 8,000-deadweight-ton vessels are being constructed at Yangzijiang Shipyard and are scheduled for delivery beginning in the third quarter.
   Oslo plans to focus on market opportunities in the Caribbean, South America, Southeast Asia, the Mediterranean and Baltic regions and deploy the mini-bulkers on medium to long-term contracts.
   International Shipholding said the ships have the versatility to move a wide variety of agricultural, construction, metal and energy-related commodities.
   The total delivered cost for the eight dry bulk vessels is about $110 million. Upon signing the agreement for the vessels in 2008, Oslo Bulk Shipping paid an initial installment of 20 percent of the contract price.
   Future installments will be paid over the construction period, with the final installment due upon the delivery of the vessels. Oslo Bulk Shipping has already secured construction and permanent financing for 80 percent of the delivered cost. International Shipholding funded its initial investment in Oslo Bulk Shipping with available cash.

Johnsen

   'Oslo Bulk Shipping marks our second transaction in two months aimed at opportunistically growing the company in a prudent manner,' said Niels M. Johnsen, chairman and chief executive officer of International Shipholding. 'This joint venture positions the company to once again take advantage of the strong long-term fundamentals in an underserved niche of the dry bulk market. Specifically, the mini-bulk market is characterized by an aging fleet, a favorable order book and a diverse cargo base.”
   In November, International Shipholding said it entered into an agreement to purchase three 36,000 dwt handysize bulk carriers with an option for a fourth being built at Hyundai Mipo Dockyard Co.