Euroseas announced that it took delivery of M/V EM
Athens, a feeder containership of 2,506 teu built in 2000 that
the Company agreed to acquire last month from Euromar, a
wholly-owned subsidiary of the Company that previously was
partially owned by the Company.
M/V EM Athens was acquired along with EM Oinousses, a feeder size
containership also of 2,506 teu built in 2000.
The Company also announced today that it exercised its option to
purchase from Euromar two additional container vessels, the M/V
EM Corfu, a feeder size containership vessel of 2,556 teu built
in 2001, and the M/V Akinada Bridge, a post-panamax size
container vessel of 5,600 teu built in 2001.
The Company has secured financing for the acquisitions of the
four vessels with a combination of debt and equity. The M/V EM
Oinousses, M/V EM Corfu and M/V Akinada Bridge are expected to be
delivered to the Company within 2017.
Furthermore, the Company announced that it has signed a
non-binding letter of intent with Poseidon Container Holdings
Group ("Poseidon"), an owner and operator container carrier
vessels, to consider a possible combination of their respective
containership fleets under certain circumstances.
Poseidon owns and operates a fleet of sixteen container carrier
vessels including four feeder containerships, two panamax and
four post-panamax containerships as well as six post-panamax
container carrier vessels of new wide beam / high reefer capacity
design with an average teu-adjusted age of 8.7 years and a total
capacity of 86,322.
The possible combination may include a spinoff of Euroseas'
container assets into a standalone company or take the form of a
different structure. The Company expects that any combination
with Poseidon would be done on a net asset value (NAV) to NAV
basis. NAV is typically calculated as the difference of the
market value of a company's assets net of the market value of its
Euroseas' strategy is to use its operating expertise and public
company status to provide a platform of consolidation for similar
assets in the drybulk and containership sectors. This strategy
may be implemented by separating Euroseas' drybulk and
containership fleets into two public companies, if the Board of
Directors determines that such a split would benefit Euroseas'
shareholders, particularly if it may also facilitate Euroseas'
Euroseas evaluates acquisition and/or combination opportunities
continuously and in that context memorialized its recent
discussions with Poseidon as described above. Euroseas reminds
its shareholders and investors that these discussions are at an
early stage, that the letter of intent is non-binding, and that
there can be no assurance that an agreement will be reached with
Poseidon or any other party.