News / MSC set for drive into car-carrier arena with takeover bid for Gram

Photo: Gram Car Carriers

MSC has launched an opportunistic effort to break into the car-carrying market with a bid to acquire Gram Car Carriers (GCC).

Announcing the bid, which values the world’s third largest car-carrier at $700m, and the Gram board’s unanimous recommendation that shareholders accept it, the firm said the offer represented a 28.3% premium on GCC’s stock price yesterday.

Chair Ivar Myklebust added: “The board is satisfied the offer represents a fair valuation, as is reflected in the recommendation to shareholders to accept it.

“[This] voluntary offer, by one of the world’s leading maritime groups, is a validation of the unique position GCC has built as a leading car shipping tonnage provider and the long-term commitment put in by the entire team.”

Shareholders own 55.8% of the company, and it will be for them to determine if the bid, via MSC subsidiary SAS Shipping Agencies Services (SAS), passes. However, Gram’s largest shareholders, F Laeisz, AL Maritime, Glenrinnes Farms, HM Gram Investment and HM Gram Enterprises – who collectively hold about 54.5% – have already accepted the deal.

Despite this particular proposal seemingly coming as a surprise, it continues a theme from MSC over the past few years: a merger & acquisition spree.

Just last month it was confirmed that SAS would take a 42% stake in French logistics operator Clasquin, from chair Yves Revol and Lyon-based private equity firm Olymp, with a view to later acquiring the remaining shares. And in February, German regulators agreed its plan to buy 49.9% of Hamburg terminal operator HHLA.

It also announced that month it would take over operations at a struggling engine-making plant in Trieste that had been run by Wärtsilä, with plans to revamp it to manufacturer rail wagons. And that followed a report MSC was eyeing a 50% stake in Italian rail operator Italo.

The Gram sale is expected to be signed off by the end of June, with suggestions it would be completed by the final quarter of the year.