Matson to acquire Horizon Lines

Matson will buy Horizon Lines.   Prior to the acquisition, Pasha will purchase the Hawaii trade lane from Horizon.  I suspect this is because if Matson took over the Horizon Hawaii service, it would not be approved because it would be a monopoly (although Horizon says this was done to reduce debt).

click here for link to complete press release

Horizon Lines To Be Acquired By Matson For $0.72 Per Share In Cash
November 11, 2014
CHARLOTTE, N.C., Nov. 11, 2014 /PRNewswire/ -- Horizon Lines, Inc. (OTCQB: HRZL) ("Horizon") today announced it has entered into definitive agreements with each of Matson Inc. (NYSE: MATX) ("Matson") and The Pasha Group ("Pasha"). Under the Matson agreement, Matson will acquire all outstanding shares of Horizon Lines for $0.72 per share in an all-cash transaction. The acquisition price represents a premium of approximately 89% over Horizon's closing stock price on November 10, 2014.  The Matson agreement has been unanimously approved by Horizon's Board of Directors and Horizon shareholders representing 55% of the fully diluted equity, which also represents 41% of the outstanding voting common stock on November 11, 2014, have agreed to vote their shares in support of the transaction.
Under the Pasha agreement, Pasha will acquire Horizon Lines' Hawaii trade lane business, prior to closing of the Matson agreement, for approximately $141.5 million in cash. The proceeds from the Pasha transaction will reduce Horizon Lines' debt obligations prior to closing of the Matson transaction, at which time Matson will acquire all of the outstanding shares of Horizon Lines and repay the remaining debt outstanding at closing. The Pasha agreement has been unanimously approved by Horizon's Board of Directors.
As a result of the transactions, Matson, Inc. will acquire all of Horizon Lines' business operations, except for the Hawaii trade lane business. The two transactions taken together are valued at approximately $598 million on an enterprise value basis. Matson will fund its transaction from available borrowings under its bank credit facilities and existing cash on hand. Pasha will fund its transaction from a committed debt financing agreement.  There are no financing conditions to either transaction.

OW Bunker will file for bankruptcy

The bankers decided to not give OW Bunker more money, after the announcement yesterday
of extensive losses due to fraud and mismanagement.

They will file bankruptcy.  This is only 8 months after their IPO.

From Bloomberg

OW Bunker (OW) A/S, a Danish shipping fuel provider that went public in March, has declared bankruptcy and reported two employees at its Singapore unit to the police following allegations of fraud.
“The board of directors and management deeply regret to inform that it has not been possible to find a sustainable solution,” the company said late yesterday in a statement. As a consequence, OW Bunker A/S, O.W. Bunker & Trading A/S and O.W. Supply & Trading A/S will file for bankruptcy, it said.
OW Bunker said Wednesday shortly before midnight it had lost $275 million through a combination of fraud committed by senior executives at its Singapore office and poor risk management. Trading in its shares was suspended on Nov. 5 and the company said its banks had refused to provide more credit. Just eight months ago, investors drove OW Bunker’s shares up 21 percent in their first day of trading, following an initial public offering that valued it at almost $1 billion.
Police in Denmark are still trying to establish the jurisdiction of the case and whether fraud was actually committed, Inspector Michael Kjeldgaard said yesterday by phone. His office wasn’t aware of any case having been filed with police in Singapore, he said.

Photographer: Kasper Palsnov/OW Bunker A/S via Bloomberg

OW Bunker ship OW Aalborg, a floating gas station for the offshore refuelling of large...Read More

Scandal in Denmark - OW Bunker

It will be interesting to follow the outcome of this investigation.  

From Bloomberg News

OW Bunker, which provides fuel to the marine industry, said shortly before midnight local time it had lost $275 million through a combination of fraud committed by senior executives at its Singapore office and poor risk management. Its shares have been suspended since yesterday and the company says its equity has been wiped out. Just eight months ago, investors drove OW Bunker’s shares up 21 percent in their first day of trading, following an initial public offering that valued it at almost $1 billion.OW Bunker, which provides fuel to the marine industry, said shortly before midnight local time it had lost $275 million through a combination of fraud committed by senior executives at its Singapore office and poor risk management. Its shares have been suspended since yesterday and the company says its equity has been wiped out. Just eight months ago, investors drove OW Bunker’s shares up 21 percent in their first day of trading, following an initial public offering that valued it at almost $1 billion.