LOCAL cargo carrier Lorenzo Shipping Corp. (LSC) has entered into a ship management agreement with local operator Magsaysay Lines, Inc. (MLI) for their seven vessels. LSC corporate information officer Arsenio Cabrera, Jr. said LSC has appointed MLI as manager of its vessels used in hauling goods and cargo within the Philippine domestic waters. "As manager, MLI shall maintain and preserve LSC’s seven vessels in seaworthy condition in accordance with the standards set forth by LSC," Cabrera explained. He said MLI will also manage its crew for a period of 24 months effective the start of next year until the end of 2007. MLI has been interested in getting majority shares of LSC through a tender offer which it entered into two months ago. Just last month, LSC transferred some 9.6% in total shares to National Marine Corp. (NMC) that increased NMC’s share in LSC to 41.36% The additional common shares of 28.86 million is equivalent to 51.32% shares out of the total 154.35 million shares NMC intends to get from LSC. NMC, a Magsaysay Lines subsidiary, is planning to increase its stake in Lorenzo to 79.68% after it offered to buy from stockholders a maximum of 154.35 million common shares equivalent to a 51% stake in LSC at P1.20 per share last month. Earlier this year, LSC transferred 29% stake to NMC from Singapore-listed Neptune Orient Lines at an estimated P350 million.
