Euroseas’ application to create a new subsidiary, Euroholdings Ltd., has been approved. The new company will operate as a holding company with a fleet of two older ships, which are being spun off from the Euroseas fleet, and its shares will be traded on Nasdaq under the symbol “EHLD.”
The new company, owned by shipowner Aristides Pittas, “will also have the opportunity to explore investments in other sectors, as well as other opportunities in maritime trade.”
Euroseas will continue to own and operate its fleet of 22 container vessels (feeder and mid-sized), while Euroholdings will independently own and operate its fleet of two vessels.
Commenting on the decision to spin-off, Euroseas Chairman and CEO Aristides Pittas stressed that “this spin-off will allow both companies to pursue different investment strategies and different distributions to their shareholders. The management of each company will be able to set appropriate performance indicators for its respective strategy and communicate it more effectively to investors and the financial community.”
“We intend to take advantage of growth opportunities to increase the size of each company, as we believe that both are well positioned to do so both in terms of their capital structure and contract mix,” he added.
