Buying Ships From Related Parties Can Be Expensive
Earlier this week, Heidmar Maritime Holdings Corp (NASDAQ: HMR) purchased the “feeder” container ship A. Obelix from Capital Maritime Management (Capital). Capital through an affiliated company owns 45.1% of HMR.
Container ships are measured in TEU, or twenty foot equivalent units, to gauge how many containers these vessels can carry. “Feeder” container ships, approximately 1,700 TEU, connect the world’s larger “hub” ports with its smaller “spoke” ports.
Feeder container ships’ prices have trended upwards in recent months, but the A. Obelix’s sale price is at a noticeable premium to similarly sized vessels’.
April: Torres Strait (1,713 TEU / built 2008) | $17 million
May: Galen (1,841 TEU / built 2007) and Garwood (1,841 TEU / built 2008) | $18.5 million each
June: Hansa Horneburg (1,732 TEU / built 2007) | $19.5 million
July: A. Obelix (1,702 TEU / built 2008) | $25.25 million
So, who gains the advantage, or disadvantage, in the A. Obelix’s premium?
Capital (the seller) owns 45.1% of HMR shares; Pankaj Khanna (HMR’s CEO) owns 45.1%; and other HMR executives and directors own 0.3%—totaling 90.5% of HMR shareholders (who all presumably voted to approve the transaction).
The next question is: is this truly the end of the A. Obelix’s story? HMR’s press release announcing the transaction implies the story will continue:
“(T)he Company intends to partner with investors, arranging the acquisition of assets … In these transactions, investors will acquire and hold an equity stake in the vessel-owning company … We are working with some potential joint venture partners for this vessel and others in the future.”
