Jinhui Shipping and Transportation, a prominent Chinese bulker operator, recently marked a noteworthy spot on the industry’s radar. This was accomplished by their acquisition spree after disposing of their oldest soon-to-retire vessel. Based both in Hong Kong and Oslo, the shipping giant clinched a deal for the UltraMax Hanton Trader III, a 2014-built model. The new asset to the fleet came at an approximate cost of $20.4 million.
Acquiring a Premium Vessel: The Hanton Trader III
As per the buzz among brokers in June, an unnamed buyer secured a deal for the 63,800 dwt ship for what is estimated to be approximately $23.5m. However, documents reveal a different story. The ship, which is connected to Japan’s Nisshin Shipping according to fleet databases, was purchased from Vega Maritime. This marine enterprise is based in UAE and is privately owned by Kenneth Fjeld and GV Surajh.
Proven History: Previous Acquisitions
Interestingly, this is not Jinhui’s first business encounter with Nisshin. Last year, Jinhui boosted its fleet size by adding Nisshin’s Hanton Trader II to its collection, after which it was renamed Jin Ping. And it seems that the new purchase is repeating a familiar rhythm. According to the online pricing platform VesselsValue, the recently acquired vessel is worth around $21.4m. The deal is expected to be sealed by November 10, 2023, at which point the vessel will be handed over, charter-free.
The Financing Strategy: Bank and Cash
Jinhui has a sound financial plan in place to complete the investment. The company plans to handle about 60% of the deal through bank financing. The remainder will be paid out from their cash reserves. Their strategy reinforces the company’s financial stability and readiness to expand their operations.
Streamlining the Fleet: Out with the Old, In with the New
In line with its latest acquisition, Jinhui strategically made space in its fleet by parting with their 2004-built supramax Jin Feng. The company conducted the transaction with Singapore’s ETL Shipping for around $8.1 million. Once both transactions are done, Jinhui will boast 24 bulkers in its enlarged fleet, showcasing a robust fleet restructuring strategy and unwavering commitment to continuous growth.
