Tuesday, February 16, 2010

Diana Shipping To Confirm New Container Shipping Line Investment

Bulk Shipper to Invest US$50 Million
Shipping News Feature

GREECE – Bulk ship operator Diana Shipping has confirmed that they have agreed to invest US$50 million in the previously announced new project involving a company formed for the purpose of investing in containerships.

The investment by Diana is equivalent to an interest of approximately 38% of the common shares of the new company. The balance of the new company’s common shares is being purchased by institutional and accredited investors in a private transaction. The funds raised are anticipated to be used in investment in vessels for the new line over the next 12-18 months.

Diana Shipping will also enter into administrative and vessel management agreements with the new company and certain Diana Shipping executives will also hold positions as executives of the new company.

In addition, Diana Shipping has agreed not to invest in any other container shipping line, while the new company has agreed not to invest in dry bulk carriers.

The news comes after a successful start to the year for Diana, which has managed to secure several lucrative contracts for its Panamax fleet of bulk vessels,

Recent good performances in the bulk market due to continued demand for raw materials, especially from China, means it appears that Diana is doing well enough to enter the depressed container shipping market in anticipation of an improvement in that sector as the global economy improves.