John Fredriksen ups stake in Greek giant Star Bulk

Following the disclosure of his initial investment in Star Bulk Carriers last March, Mr Fredriksen has now increased his stake in the US-listed, Petros Pappas-led dry bulk giant. According to a SEC filing dated 5 May, Mr Fredriksen holds 13.34M shares, equivalent to an 11.4% stake in the Greek shipowner. This reflects the purchase of approximately 1.50M additional shares since March, boosting his exposure by 1.4%.

The initial investment had surprised the market, particularly as it came shortly after Mr Fredriksen exited the public dry bulk space by selling his stake in Golden Ocean to the Saverys family controlled CMB.Tech.

At the time, analysts told Riviera Mr Fredriksen’s pivot could be interpreted as a play on price-to-net asset value (P/NAV) arbitrage. He sold his Golden Ocean stake at a valuation above NAV (close to a 25% premium) and then bought into Star Bulk at a 30.0% discount to NAV.

Speculation mounts

Mr Fredriksen’s increased involvement has reignited speculation over his broader strategy in dry bulk. As previously reported by Riviera, his private shipping company, Seatankers Management, has been linked to a recent string of sales involving middle-aged bulk carriers. These sales closely followed the disposal of his Golden Ocean shares.

Market sources suggest Mr Fredriksen’s expanded position in Star Bulk is likely a passive, financial investment rather than a precursor to deeper strategic involvement. Some industry observers believe his exit from Golden Ocean is part of a broader consolidation or ’clean-up’ of his positions, casting doubt on the likelihood of a major new commitment in the same segment.

According to MarketWatch, Star Bulk currently holds a market capitalisation of approximately US$1.8Bn, with its share price having climbed nearly 20.0% over the past month. The company operates a fleet of 151 bulk carriers, with five additional Kamsarmax vessels under construction.

In a separate filing on 2 May, the Greek shipping company announced its annual shareholders’ meeting will be held on 14 May.