To Be, or Not to Be (Public)?

by Matt McCleery & Peder Bogen

Anangel American’s current $46 million rights offering is a reminder that the company is stuck in the twilight between being public and private, and perhaps for good reason. While all companies face challenging decisions with respect to growth, we think Anangel is a barometer of the prospects for capital markets driven consolidation in the dry bulk sector.

With a fleet of 22 modern vessels, a healthy balance sheet, strong management, and a ten-year old stock listing, Anangel, more than any other dry bulk company in the world, could position itself as a premier public consolidator of the fragmented sector. Now, with a window of opportunity open for the few dry bulk companies with strong balance sheets, the company must answer the question of whether bigger will ever be better for dry bulk. The implications for ship finance are enormous.

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