Testing the Waters

As a consequence of its insolvency, Allco this week awarded Citi the advisory role for the sale of it shipping affiliate, Allocean. This business is fundamentally sound with all the ships on charters, the charters current and the debt in place. The company owns a diverse fleet consisting of tankers, bulk carriers, containerships, LPG carriers and offshore supply vessels (see chart below). In addition it has a substantial orderbook of 15 vessels to be delivered in 2009.

Citi is positioning the company, with its experienced management team, as the sale of a platform for non-strategic buyers. It is an opportunity to buy in at today’s values, build a business and enjoy the upside when the world economy improves. We understand that a large number of smart people (read private equity)

This is only an excerpt of Testing the Waters

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.