Golden Ocean today announced the acquisition of 16 dry bulk vessels for a consideration of USD 127m in shares and USD 285m in assumed debt. The acquisition and its funding structure is in our view a “no-brainer” as the shares were post-transaction trading at a P/NAV close to 1.5. The transaction is however 11% above our estimated fair value for similar vessels, indicating that asset prices are rising even faster than we had forecast. This is in-line with the most recent S&P rumors.

Despite our positive view on the sector, we still believe GOGL-US is overvalued and reiterate our SELL recommendation. However, we upgrade our TP to USD 4.2 (4.0) due to the accretive shares-for-vessels acquisition.



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