Shipping magnate John Fredriksen has reduced his ownership interest in Frontline merger target Euronav, having sold around 2m shares in the Antwerp-based tanker giant.
According to the latest US Securities and Exchange Commission (SEC) filing, Fredriksen offloaded 1% of its Euronav slice for $39.2m and now controls around 35.86m shares, corresponding to an ownership interest of 17.78% in the Brussels and New York-listed company.
Meanwhile, Fredriksen’s rival in the merger between the two tanker companies, the Saverys family, bolstered its position in Euronav earlier this month, taking their stake to nearly 24%.
“This is obviously a little surprising and comes as Saverys keeps increasing its stake and now should be able to block an outright merger. With the market still not fully pricing in a merger, this could raise some question marks,” Pareto Securities noted in a report published today.
Frontline and Euronav struck a definitive merger deal in July. Frontline is expected to make a voluntary conditional exchange offer for all outstanding shares of Euronav after it moves its corporate domicile from Bermuda to Cyprus.
Commenting on Fredriksen’s move to cash in on Euronav shares, which have significantly risen since his first major investment, Norwegian investment bank Arctic Securities said this was “a clear signal that the Fredriksen Group is confident that the upcoming tender offer will receive sufficient acceptance.”
