National Maritime offers P185M for 51% of Lorenzo Shipping

National Maritime Corp. (NMC) has tendered an offer to buy up to 51 percent of the outstanding common shares of Lorenzo Shipping Corp. (LSC) for P1.20 per share or P185.2 million.

NMC is offering to buy a maximum of 154.35 million shares of LSC. The tender offer will start on Sept. 26 until Oct. 21, 2005.

Prior to the start of the tender offer period, NMC has secured sufficient funds to satisfactorily cover the offer price.

The tender offer followed NMC’s acquisition of 28.68 percent of Singapore’s Neptune Orient Lines Ltd. (NOL), one of the world’s largest container shipping and logistics companies.

Founded in 1972, LSC provides inter-island containerized cargo shipping services in the Philippines. It operates a fleet of eight containerized cargo vessels and markets its services through a network of branches and agencies at the national port served by its vessels.

The company’s business focus has evolved from that of being a break-bulk cargo carrier to a fully containerized cargo shipping company.

LSC’s network is comprised of seven branches: Cebu, Davao, Gen. Santos, Cotabato, Iloilo, Cagayan de Oro and Manila and three agencies: Zamboanga, Dumaguete and Bacolod.

With plans to enter new service routes in the future, LSC will open marketing offices and expand its network to support its plans for new service routes.

LSC said there has been a continuous volume support from regular shippers such as manufacturing companies, forwarders and distributors.

The continued movement of agricultural products particularly rice from north to south has also significantly contributed to the growth.