Atlas Corp, which controls Seaspan, has entered into a definitive S&P Agreement with Poseidon Acquisition Corp (a consortium of affiliates of Fairfax Financial Holdings Limited, affiliates of the Washington Family, Atlas Board Chairman David Sokol, and Ocean Network Express Pte Ltd) under which Poseidon will acquire Atlas in an all-cash transaction of around Can$10.9B.
Atlas is an asset management company, also known as the owner of Seaspan Corporation, the largest independent global containership lessor. Its other main portfolio company is APR Energy Ltd. Atlas Corp was known as Seaspan until November 2019.
Seaspan is the largest independent owner and operator of containerships in the world, charters its vessels primarily pursuant to long-term, fixed-rate time charters to eight of the world’s top ten container shipping lines. As of June 30, 2022, Seaspan’s operating fleet consisted of 127 vessels with a total capacity of 1,156,630 TEU, and an additional 63 vessels under construction, increasing total fleet capacity to 1,919,630 TEU, on a fully delivered basis. Seaspan’s delivered fleet has an average age of 4.8 years and a remaining charter period of 7.0 years on a TEU-weighted basis.
Poseidon will acquire all outstanding common shares of Atlas not owned by Fairfax, Washington and David Sokol for Can$15.50 per share in cash. Fairfax, Washington and Sokol currently own around 68% of the outstanding common shares, so in effect the only change in ownership structure appears to be the entry of ONE Ocean Network Express (NYK, MOL and K Line).
“We are pleased to have reached this agreement which, through the combination with Poseidon, introduces Atlas to an important corporate sponsor in the form of ONE,” said Nicholas Pitts-Tucker, Chair of the Special Committee of the Board of Atlas. Fairfax, Washington, Mr Sokol and ONE will be outstanding partners as Atlas advances its operational improvements and drives growth to support its customers and enhance opportunities for its employees.”
Bing Chen, President and CEO Atlas Corp, said: “Atlas has continued to develop its long-term strategic partnerships and differentiated business model to position the company for sustainable and quality growth. We believe this transaction with Poseidon is an exciting culmination of those efforts for our shareholders.
“I look forward to continuing to work with David and the rest of the Atlas team as we continue our progress, including preparing for the launch of our new vessel fleet, which we expect to be fully delivered by 2024.”
Chen will continue to serve as President and CEO of Atlas and will contribute his equity in Atlas to become an owner of the company along with Poseidon.
Source: World Cargo News
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