Bear Stearns affiliate completes acquisition of MC Shipping

By Lisa Kerner

Charlotte, N.C., Sept. 12 - Bear Stearns Merchant Banking completed the acquisition of MC Shipping Inc. first announced on July 30.

Mast Acquisition Ltd., a Bear Stearns Merchant Banking affiliate, agreed to acquire the outstanding shares of MC Shipping for $14.25 cash per share in a transaction valued at $284 million including debt. MC Shipping will continue to operate under its business name and will continue to be based in Monaco.

"We are excited about this investment in the LPG [liquefied petroleum gas] shipping industry," senior managing director of Bear Stearns Merchant Banking Doug Korn said in a company news release.

"Global trends in LPG demand growth should continue to be strong due to its cost-competitiveness as well as its clean-burning, environmentally-friendly properties."

"MC Shipping has been engaged in a three-year project to turn its business around and to give it structure and focus," MC Shipping president and chief executive officer Antony Crawford added. "The welcome entry of BSMB is well timed to provide the additional equity, financial skills and guidance to allow the next stage of the business plan to be implemented while allowing current shareholders a favorable exit."

It was previously reported that MC Shipping shareholders voted to approve the merger on Sept. 5.

DnB NOR Markets and Milbank, Tweed, Hadley & McCloy LLP advised MC Shipping. Bear Stearns Merchant Banking was advised by HSBC Securities (USA) Inc., Poten Capital Services, LLC and Weil, Gotshal & Manges LLP.

MC Shipping is a shipping company focused on maritime transportation of liquefied petroleum gas. The company is based in Monaco with an office in London.

Bear Stearns Merchant Banking is the private equity affiliate of the Bear Stearns Cos. Inc.

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