2020 Bulkers Seeks Shareholder Backing for $406 Million AHTS Fleet Purchase and Offshore Rebrand

Oslo-listed 2020 Bulkers has signed a non-binding LOI to buy AHTS AS and affiliates, taking on up to 15 anchor-handling tugs for about USD 406 million.

2020 Bulkers has unveiled a non-binding letter of intent to acquire AHTS AS and five affiliated project companies, a deal that would see the Oslo-listed shipowner take on as many as 15 large anchor-handling tug supply vessels and abandon dry bulk shipping altogether.

The aggregate purchase price for the fleet comes to roughly USD 406 million on a debt-free, cash-free basis. To pay for it, management is leaning heavily on equity, with the transaction to be funded predominantly through the issuance of new 2020 Bulkers shares. The company puts the total financing package at up to about USD 485 million — a figure that covers the purchase price alongside bank facilities of as much as USD 160 million, the refinancing of certain entities, and funds earmarked for ongoing operations and future consolidation moves.

Arctic Securities AS, Clarksons Securities AS, DNB Carnegie, Fearnley Securities AS and Pareto Securities AS are serving as joint bookrunners for the placement.

From Bulk Carriers to Offshore

The move amounts to a wholesale reinvention of the business. Having disposed of its original fleet of six Newcastlemax bulk carriers in the spring, the company was left with roughly USD 4 million in liquidity. The agreed acquisition now turns what had been a pure dry bulk operator into a specialist player in the offshore market, and the rebranding of the company as "AHTS" is planned as part of the shift.

The target structure spans several existing owner entities. AHTS AS currently owns seven vessels and holds purchase contracts for three more, while additional target companies contribute three ships and two purchase contracts, bringing the fleet to as many as 15 once the deal closes. Media reports put the acquisition at an estimated discount of about 40 percent to current newbuild prices.

A Tight Market for Heavy Tugs

The rationale rests on a strained supply picture in the market for heavy anchor-handling tugs. Only a single large vessel of this type has been built worldwide since 2018, even as the existing fleet grows steadily older. At the same time, the resumption of exploration drilling and the development of new offshore basins is underpinning demand for such workboats, pushing charter rates higher. Tom Babinski will take the helm of AHTS AS as CEO.

The business model targets rapid distributions to shareholders. At current market prices, an implied free-cash-flow yield of around 20 percent is expected, and management intends to pay out the bulk of free cash flow on a quarterly basis after debt service is covered.

Vote Set for September 29

Completion is not yet assured. The company stressed that the transactions depend on the signing of definitive agreements and further conditions, and there is no guarantee the acquisition will go ahead. Should it proceed, the company aims to focus its operations entirely on owning and operating large AHTS vessels while keeping its listing on the Euronext Oslo Børs — a move that remains subject to approval by the exchange. Trading in the shares on the Oslo Børs was briefly halted around the announcement and resumed shortly afterwards.

Shareholders will have their say at an extraordinary general meeting convened for September 29, where they will vote on the planned transaction and the accompanying resolutions, including the necessary capital increase. The record date for attendance and voting rights has been set at September 22, leaving investors just days to weigh a decision that would set the company's course for years to come.