Norway’s Belships Agrees to Buyout by US-Based Investment Manager EnTrust

Norway’s Belships, a large operator of dry bulk and majority holder of Norwegian Bulk Carriers, agreed last week to the terms for a buyout offer from U.S.-based investment manager EnTrust Global. The board of Belships highlights its goal as an investment company was to provide a competitive return to shareholders while EnTrust is actively focused on expanding its presence in maritime and maritime and maritime infrastructure investments.

“Six years have passed since the merger between Belships ASA and the Lighthouse Group,” said Peter Frølich, Chair of the Board, and Lars Christian Skarsgård, CEO of Belships ASA.  “Our goal was to develop the company through strategic investments aimed at expansion and to obtain competitive returns for our shareholders. The total return during the period amounts to 455 percent including dividends. This has been a successful exercise of value creation and company development, and we now find it compelling to be able to present our shareholders with the opportunity for realization, and yet another step forward in Belships long history as a company.”

EnTrust through its Blue Ocean maritime investment group is offering a nearly 30 percent premium to the closing price of the stock on December 19 or a premium of just over 17 percent versus the 30-day weighted average. The recommended voluntary cash offer will be for NOK 20.50 per share ($1.80 per share). 

The board says it unanimously resolved to recommend the offer calling the terms a “fair offer.” Analysts agree that while not a high valuation it is a fair deal.

Shareholders including members of the board and the executive management of the company have given irrevocable commitments for what totals just over 61 percent of the shares. The acquiring Blue Northern BLK is seeking to reach 90 and then it will make a mandatory offer for the remainder.

EnTrust highlights through its Blue Ocean Strategy, it currently has over $5 billion in total managed assets and capital commitments in the maritime sector. EnTrust believes this transaction represents a significant opportunity to increase Blue Ocean’s presence in the dry bulk shipping space, with Norway as an attractive maritime hub. The group has a dedicated team managing the firm’s maritime investments with long-term track records in related sectors. 

Belships currently reports it has a fleet of 29 vessels and a further 12 under construction representing a total of 2.6 million dwt. The newest vessel, Belgrace (64,000 dwt) was built at Shin-Kasado Dock Co., Ltd., an NYK group company and part of the Imabari Shipbuilding group in Japan. The shipyard highlights the versatility of the vessel with multiple cargos and that it anticipates the Tier 3 requirements which do not go into effect until 2025. The other newbuilds are due for delivery between 2025 and 2028.

Belships also owns 67 percent of Norwegian Bulk Carriers AS. Previously known as Lighthouse Navigation, which was acquired in 2017, Norwegian Bulk Carriers AS is a global dry bulk operator.

In 2023, Belships announced it had decided to exit its ship management business. It agreed to selling its operation and outsourcing its ship management to UK-based V.Group.

The voluntary offer for Belships is expected to launch by January 24, 2025. It runs for a minimum of 20 business days and can be extended until March 31, 2025.