Gener8 Maritime commits ‘financial suicide’ with latest sale

Gener8 Maritime commits ‘financial suicide’ with latest sale

While key backers are walking away from Gener8 Maritime, Peter Georgiopoulos has pushed ahead with what has been described as a “suicidal” move to sell $500m worth of securities.

As three shareholders, Oaktree, Avenue Capital and Navig8, who together hold a 28.7% stake in the tanker owner, look to cash in their stakes, speculation is once again mounting that Gener8 Maritime is readying to be taken over.

J Mintzmyer, lead researcher at New York’s Value Investor’s Edge, told Splash that an organised institutional exit could open the door for a bid from another party.

Mintzmyer questioned the planned securities sale, saying: “GNRT selling any common equity anywhere near these prices would be financial suicide and clear evidence of absolute managerial incompetence.”

Mintzmyer said he was convinced the best options for GNRT shareholders are either selling a handful of new VLCCs to a deeper pocketed peer or a full takeover by Frontline or Euronav.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Stanley
    January 12, 2017 at 3:14 am

    I hope PG doesn’t walk all over his minority shareholders like this. I smell lawsuits if they do this offering to Oaktree and other tutes.