Market leader Wallenius Wilhelmsen has raised $300 million through a share issue and plans to use the funds to order up to a dozen new car carriers.
The Scandinavian joint venture between the shipping groups Wallenius and Wilhelmsen announced that 17.15 million new shares had been issued via a private placement at a price of 168 NOK per share. The largest shareholder, Wilh. Wilhelmsen Holding, acquired 17 per cent of all the new shares. Like the Swedish bank SEB, the holding company now holds 37.82 per cent of the shares.
Wallenius Wilhelmsen sees itself as a market leader in Ro-Ro shipping and vehicle logistics – breakbulk and project cargo have also been an important part of its cargo mix for many years. The fleet has already been modernised through numerous newbuilds; it currently comprises 127 vessels operating on 15 trade routes to six continents.
It now appears that further newbuilds are to be added to the order book, as announced in connection with the share issue: “With this private placement, the company is expanding its newbuild programme to strengthen its leading position in the deep-sea Ro-Ro segment.” According to the information provided, “advanced discussions are being held with shipyards regarding the conclusion of shipbuilding contracts”.
Wallenius Wilhelmsen is focusing on LNG
The plan is to order four large LNG dual-fuel vessels “on attractive terms”, as well as options for eight further vessels “on similar terms”. Deliveries are therefore expected to take place gradually from 2030 onwards. The current new-build programme would thus grow to a total of 26 vessels (including options), with vessels entering service from the third quarter of this year.
The net proceeds from the issue are to be used – together with debt financing – to fully fund the entire new-build programme and for general corporate purposes. Furthermore: “The private placement also enables the company to maintain a solid balance sheet. This creates flexibility to capitalise on attractive growth opportunities as they arise and to offer shareholders a competitive long-term return through a combination of appreciation in the value of the Wallenius-Wilhelmsen share and dividend payments.” For the third quarter, the company expects adjusted EBITDA in the range of $420 million to $450 million; for the full year, it continues to anticipate adjusted EBITDA of around $1.6 billion.
