Home » Maritime » Box line NMC eyes 51% of Lorenzo

CARGO carrier National Marine Corp.(NMC) has bid for a controlling interest in another cargo carrier, Lorenzo Shipping Corp (LSC). In a statement to the Philippine stock exchange, NMC said it plans to acquire 51% of the outstanding common shares in the container ship operator for P185.22 million ($3.3 million). The P1.20 per share offer is slightly more than the valuation of P1.10 per share based on the stock’s performance over the last six months. The tender offer was September 26 and expected to lapse yesterday. Meanwhile, signing of the Memorandum of Agreement on the sale is expected to commence anytime this week.

"The aim is for National Marine to take majority control and maintain it as a viable opportunity in the domestic liner business," a company source told PortCalls. The Magsaysay Maritime subsidiary acquired 29% stakes in Lorenzo from Singapore-listed Neptune Orient Lines for about P350 million early this year. Founded in 1972, LSC operates a fleet of seven container ships in the domestic trade. For the first six months of the year, its net income rose 20% to 39.2 million from 32.7 million during the same period last year. Net freight revenue increased 10% from P567.8 million to P622.8 million this year resulting from the 6% increase in liftings and 4% increase in revenue per TEU.

"The 6% increase, despite the lesser number of 13 vessel voyages this year, is credited to the increase in foreign boxes shipments where contribution for this year almost doubled that of last year," LSC said. It added the increase in revenue per TEU is attributable to the implementation of a 9% and 5.5% General Rate Increase in October 2004 and January 2005 respectively, as well as freight increase in foreign shipping lines.

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