Greek Shipping Company Spin-Offs
Last week Euroseas Ltd. (ESEA), led by Aristides Pittas, announced its intention to spin off three vintage container ships into new company Euroholdings at the end of the month.
In 2018, Euroseas spun off their fleet of six dry bulk carriers into EuroDry Ltd. (EDRY). EuroDry’s share price held its value over its first year of trading, falling by only 0.7%.
If Euroseas achieves the same feat with Euroholdings, it will buck the recent trend of incredibly value-destructive Greek shipping company spin-offs.
2021 | Diana Shipping Inc. (DSX)
CEO: Semiaris Paliou
Spun off OceanPal Inc. (OP) owning three dry bulk carriers
First year share price decline: 95.7%
2021 | StealthGas (GASS)
CEO: Harry Vafias
Spun off Imperial Petroleum (IMPP) owning four tankers
First year share price decline: 95.4%
2022 | Castor Maritime (CTRM)
CEO: Petros Panagiotidis
Spun off Toro Corp (TORO) owning eight tankers
First year share price decline: 57.7%
2023 | Imperial Petroleum (IMPP)
CEO: Harry Vafias
Spun off C3Is (CISS) owning two dry bulk carriers
First year share price decline: 99.9%
Investors may quickly lump Euroholdings in with the companies above, but in doing so would prematurely write off a compelling opportunity—given its past spin-off experience, Euroseas deserves the benefit of a doubt.
Disclaimer: I am long shares of Euroseas in anticipation of the Euroholdings spin-off.
This post is strictly for informational purposes and should not be considered investment advice.
