Seaspan Corporation (NYSE: SSW) announced today that its Board of Directors has appointed Larry Simkins, President, Chief Executive Officer and Director
of the Washington Companies ("WashCo"), to its Board to replace Graham Porter, who has resigned as a Director of the company to focus on other personal and professional commitments. Following Seaspan's 2017 Annual General Meeting, it is anticipated that the Board will expand from eight to nine members and will add David Sokol, a Director of WashCo and experienced executive, as a Director.
WashCo, through its affiliates Deep Water Holdings, LLC and Copper Lion, Inc., is Seaspan's largest shareholder with ownership of approximately 50 percent of Seaspan's outstanding shares. WashCo today is filing an amendment to its Schedule 13D with the Securities and Exchange Commission, to reflect, among other things, the appointment of Mr. Simkins and the anticipated appointment of Mr. Sokol, two of its nominees, to Seaspan's Board. The Washington Companies were founded by industrialist and entrepreneur Dennis R. Washington and are privately held companies active in the core industries of rail and marine transportation, mining, aviation, environmental remediation and restoration services, and heavy equipment sales and service.
Gerry Wang, Chief Executive Officer, Co-Chairman and Co-Founder of Seaspan, commented, "We are pleased to welcome fresh perspectives and ideas from Larry, and later this month from David, as representatives from our largest shareholder and proven business leaders. We are encouraged by recent positive signs of a recovery in the global container shipping market, and believe that the newly constituted Board will enhance our ability to capture emerging opportunities, benefitting the company and all of our shareholders."
Kyle Washington, Co-Chairman and Co-Founder of Seaspan, added, "On behalf of the Board, I would like to thank Graham for his many years of service and contributions to Seaspan - a company we, together with Gerry, built into the world's leading containership leasing business. We wish Graham all the best in his future endeavors and know that Seaspan is well-positioned for the future, and in good hands with our incumbent and new Directors, both of whom I know and respect from our many years working together at the Washington Companies."
Larry Simkins said, "I am excited to have the opportunity to contribute to a great company in Seaspan, which I have followed closely as an investor for many years. Seaspan has created an unsurpassed containership leasing platform, and I too am encouraged by signs of a market recovery. I look forward to working closely with Gerry, who I have known for a long time and is a pioneer in the industry, as well as the full Board to build on the company's successes and create sustainable value for shareholders."
David Sokol added, "Seaspan is clearly an industry leader that provides critical services to world-class liner companies. I see an opportunity for Seaspan to solidify its industry position even further as the market improves, and I look forward to engaging with the other Directors and management to support that growth when I am appointed to the Board."
Seaspan and Gerry Wang have agreed in principle to amend his employment agreement to remove transaction fees and enter into discussions in regard to further amendments to his employment agreement and compensation package. In addition, Seaspan and Seaspan Financial Services Ltd., an entity owned and controlled by Graham Porter, have agreed in principle to terminate the Financial Services Agreement between the parties. Seaspan may, from time to time, engage Graham Porter or his affiliates to provide advisory services on specific transactions, as approved by its Board.