Oaktree cancels offer for stake sale in Torm after shares tumble
Oaktree Capital Management has decided not to go forward with the stake sale in Torm after the shares in the Danish product tanker owner declined sharply on Thursday.
The US private equity firm, which owns around 65% of Torm, was looking to offload 6% or 5m of its shareholding and grant a 30-day option for an additional 750,000 shares (7%).
The sale was set at market terms, which could have seen Oaktree bank around $163m, excluding the optional sale. However, Torm’s shares tanked 14.3% in Copenhagen and 12.7% in New York, from $32.69 to close at $28.53.
“The termination results from an assessment by the selling shareholder that current market conditions are not conducive to this offering on terms that would be in the best interests of the selling shareholder,” the owner of 88 product tankers on a fully delivered basis said in a statement.
