Navig8 is building up a sizeable stake in Awilco LNG with speculation growing in Oslo that the tanker giant is readying a takeover bid.
Subsidiary Navig8 Topco Holdings came in for another 7.6m Awilco shares yesterday, having bought 10m shares on Wednesday.
Navig8 has now crossed the 15% shareholding, Awilco LNG revealed today. Navig8 controls 19.63% of Awilco’s total outstanding shares as of the opening of trading at the Oslo Bors this morning.
“We will not speculate what the goal is, but priced at a large discount to steel, Awilco is an obvious M&A candidate,” Cleaves Securities said in a report yesterday.
The Awilco LNG fleet stands at just two 2013-built gas carriers, sisterships WilForce and WilPride.
Singapore-headquartered Navig8 operates one of the world’s largest and most diverse tanker fleets, involved in crude, chemicals, products and bunkers, but to date has yet to enter the gas markets.
The proliferation of containers like NAVIG8 will make the mental health of seafarers worse.