A merger between dry bulk shippers Golden Ocean Group Ltd (OSE: GOGL) and Knightsbridge Shipping Ltd (Nasdaq: VLCCF) has been formally approved by shareholders, thereby creating one of the largest dry bulk shipping companies in the world.
The merger between the two companies was first announced last October but was subject to approval by the shareholders of both Golden Ocean and Knightsbridge during separate special general meetings, both of which were held this morning.
The combined company will be renamed Golden Ocean Group Limited, with the Fredriksen family holding 39% of the shares and votes in the combined company via Hemen Holdings.
The merger creates one of the world’s leading dry bulk companies with a modern fleet of 72 vessels, including 36 are newbuildings under construction. Including the newbuilds, the combined fleet will consist of 46 Capesize vessels, 10 ice class Panamax vessels, 8 Kamsarmax vessels and 8 Supramax vessels.
A significant portion of the newbuildings were originally ordered by Frontline 2012, a company controlled by Fredriksen, that were sold to Knightsbridge in March 2014.
The merger comes amid a massive downturn in the dry bulk market.
More details on the combined company and merger can be found HERE.