Ocean Wilsons upbeat on investment performance, urges merger support

(Sharecast News) - Ocean Wilsons reported a 6.2% return on its investment portfolio for the second quarter on Friday, taking year-to-date performance to 5.1%, despite what it described as a "challenging macroeconomic environment marked by trade uncertainties and ongoing geopolitical tensions". The FTSE 250 company said the portfolio was valued at $340.9m at the end of June, equivalent to $9.64 per share, with total implied net asset value at $944.2m including cash from the recently completed tender offer.

Its update followed the $594m sale in June of the company's 56% stake in Wilson Sons to MSC's SAS Shipping Agencies Services, a move it said "significantly strengthened" its balance sheet.

In July, Ocean Wilsons returned £109.1m to shareholders via an oversubscribed tender offer, repurchasing 20% of its share capital at 1,543p per share.

The same month, it paid a final dividend from Wilson Sons of 59 US cents per share, which it said would be the last from that holding.

On 28 July, the company announced plans to merge with Hansa via an all-share scheme of arrangement.

The independent committee of Ocean Wilsons said it believed the deal "will create a larger, stronger company which will benefit from meaningful scale and cost efficiencies and will be well placed to deliver long-term, sustainable shareholder value".

Under the terms, each Ocean Wilsons share would be exchanged for 1.4925 new Hansa share units, comprising one voting share and two non-voting 'A' shares.

The boards of both companies unanimously backed the merger, to create a closed-ended investment company with more than £900m in net assets and a diversified global portfolio.

Completion was expected in late September, subject to shareholder approval at a 12 September meeting.

The committee urged investors to back the deal, warning that if it did not proceed, Ocean Wilsons could face listing changes under UK rules, restrictions on further buybacks due to "close company" limits, and the loss of dividend cashflows from Wilson Sons.

"Accordingly, the Ocean Wilsons independent committee unanimously recommends that Ocean Wilsons shareholders vote in favour of the scheme at the court meeting," it said.

At 1236 BST, shares in Ocean Wilsons Holdings were up 0.385 at 1,144.31p.

Reporting by Josh White for Sharecast.com.