Mercator Lines to acquire 4 Dry Bulk Vessels totaling 305,000 DWT

Mercator Lines Ltd has announced that in one of the mega deals in the Shipping Sector in the current year, the Company has entered into MOAs for acquiring 4 Dry Bulk Vessels totaling 305,000 DWT through its subsidiary Mercator Lines (Singapore) Pte. Ltd. with estimated investment of appr. Rs 1000 crores. The vessels are expected to join the fleet of the Company between June-July 2007.

Last month Mercator Lines (Singapore) Pte Ltd successfully raised USD 51 million by way of issue of convertible bonds which are listed on Singapore Stock Exchange. About two months back Mercator Lines (Singapore) Pte Ltd invested about Rs 530 crores for acquiring 2 kamsarmax vessels. During past 12 months, Mercator group has committed to invest about Rs 2750 crores in the expansion of its fleet and offshore business.

With these acquisitions, Mercator shall become a dominant player in the dry bulk segment. The consolidated fleet of Mercator will be of 27 vessels with total capacity of about 2.45 million tons.

India continues to import large quantities of coal and with the implementation of the mega power plants at a faster pace, India's coal imports would increase substantially. The Mercator expects the dry bulk freight rates to remain firm on a medium to long-term basis.

Source : Equity Bulls

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