LONDON (ShareCast) - Fully listed Braemar Shipping has agreed a merger with AIM-listed rival ACM Shipping, where the larger Braemar will acquire all the smaller company's shares.

The deal has been agreed at a price where ACM shareholders will receive two new Braemar shares and 250p in cash for every five ACM shares, valuing ACM at £55m.

As a result of the deal, ACM shareholders should own 28% of the share of the combined group and Braemar shareholders 72%.

ACM shareholders will also be entitled to receive the ACM second interim dividend of 7.0p that was declared by ACM on Tuesday in place of a final dividend.

The boards of both companies recommended the merger as they believe both company's shipbroking teams have complementary skills and experience, "making it one of the world's leading shipbrokers" with potential synergies to make the it "more attractive to clients, employees and investors".

The companies added that the enlarged group was expected to deliver earnings per share enhancement in the first full financial year following the merger and will have a strong balance sheet and cashflow generation.

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