In a move familiar to industry veterans, John Fredriken is moving on several fronts at once, upping his family’s interests stake in very large crude carrier (VLCC) operator Euronav, and taking a controlling interest in very large gas carrier (VLGC) operator Avance Gas
John Fredriksen’s private companies have collectively taken a 10% stake in the public listed VLCC operator Euronav.
As industry observers will be aware, this does not necessarily indicate that John Fredriksen is formulating a takeover or a merger. This could be a counter-cyclical move based on the Euronav share price and the current weak state of the tanker market.
In the past, the fact that he has taken a stake in a shipping company has been enough to move the share price upward, and from that higher position he has sold at a profit.
A much larger position has been taken by his private company Hemen Holdings in VLGC operator Avance Gas.
According to a press release from Avance Gas, John Fredriksen now has control of the company:
“Hemen had received valid acceptances for in total 26,051,095 shares, corresponding to approximately 33.65% of the registered share capital and voting rights in the Company, of which acceptances for 12,125,955 shares were received in the last day of the offer period, on 12 October 2021.
In addition, Hemen has acquired 6,918,627 shares in the market since commencement of the offer period in the Mandatory Offer at a price per share below or equal to the offer price in the Mandatory Offer.
Thus, following completion of the Mandatory Offer and subject to due settlement of the shares for which acceptances are received, Hemen will own 58,352,953 shares in the Company, representing approximately 75.37% of the registered share capital and voting rights in the Company.
In addition, Frontline Ltd, a company in which Hemen holds approximately 40.0% of the shares, owns a total of 442,384 shares in the Company, resulting in Hemen and Frontline having an aggregate holding of 58,795,337 shares equalling approximately 75.94% of the share capital and voting rights in the Company.”
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