Eitzen - To merge and list Bulk Division

Wait for the sales
Eitzen Bulk opted to merge with sibling Orion to become a listed company rather than enjoy the fresh capital an IPO would provide as it has no need for the money, its managing director says.
Per Lange.
Per Lange explains the firm is looking to buy but he does not believe now is the right time.
In an interview with TradeWinds after the merger of the two Camillo Eitzen subsidiaries was announced, Lange said: “The present situation is that we have no need for fresh capital.
“This market will have opportunities for investment in the future. Getting fresh capital now would put pressure on us to buy in the wrong market.”
He explains the company will be open to buying vessels, possibly in partnership with others, when and banks and yards have become “reluctant shipowners”. Takeovers will also be an option in the future, Lange adds.
Eitzen Bulk management and key staff have paid around $10m to buy a 14.6% stake in the company.
CECO retains an 85% holding, but is willing to sell shares to boost the liquidity of the stock, Lange says.
Shares in Orion, which is to be renamed Eitzen Bulk Shipping when the merger is complete, climbed 18.81% to DKK 36 ($7.18) each in Copenhagen at the time of writing Friday.
Orion, in which CECO previously held a 93% stake, has not owned vessels since January 2007 following the sale of the -lane-metre ro-ro Lisbeth C (built 1993) to Arrow Seismic. However, it does have around $8m in cash.
Eitzen Bulk does not own any vessels but has over 50 ships on charter, some with purchase options. It also has a single newbuilding on order in Japan for delivery in 2011, Knudsen says.
The idea of floating Eitzen Bulk first emerged back in June with the Nasdaq OMX exchange in Copenhagen the likely destination.

By Andy Pierce in London