One From Column A and One From Column B

In our last issue, we featured a global offering by Jinhui Shipping and Transportation Limited, a Hong Kong company operating primarily in the People’s Republic of China. This issuance included a private offering of some 24 million shares and a 2 million share public offering on the Oslo Exchange. Now we have another offering, underwritten by Lazard Freres & Co., Furman Selz and Natwest Securities from Pacific Basin Bulk Shipping Limited. In addition to operating in the same geographical area, both Jinhui and Pacific Basin are bulk shipping companies using handysize vessels. Pacific Basin’s offering is different from Jinhui’s in that it was an all public offering of 5.75 million units, a combination of shares and warrants, including the 15% overallottment which were sold. Each unit consisted of one share of common and a warrant to purchase .25 shares of common exercisable between October 1995 and September 1999. The units will trade on the US NASDAQ National Stock Exchange until March 31, 1995 at which time the shares and warrants will trade separately. The warrants are exercisable at $16.80 per share. The initial public offering price of a unit was $14.00.

Pacific Basin was established in 1987 by current management, together with Compagnie Maritime Belge (CMB), a leading European shipping company. CMB initially owned 75% of Pacific Basin and acquired the remaining 25% between 1989 and 1991. Later in 1991, Pacific Basin’s current management formed an investor group to acquire 100% from CMB. This investor group included such names as Rockefeller & Co., Connecticut based shipping company Navios, Ryoshin Leasing (a Mitsubishi joint venture collaboration), Great Eagle Holdings of Hong Kong, and Peregrine Investments Holdings, a leading Asian investment banking group. In 1992, CMB re-entered the picture by acquiring 17% of the equity.

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