US private equity giant Oaktree Capital Management has filed to sell 3.5 million class A shares in Danish product tanker owner Torm, according to a filing with the US Securities and Exchange Commission. The proposed sale values the shares at about $103.2 million, with Morgan Stanley listed as broker for the transaction, as reported by Splash247.
Deal Details
The filing by Oaktree-linked OCM Njord Holdings comes amid a broader strategy by the private equity firm to reduce its long-held position in one of the world's largest product tanker owners. Torm stated in March that OCM Njord held 23.8 million shares, equivalent to 23.39% of the company's share capital and voting rights. The current sale will further shrink that stake.
Prior Transactions and Governance Impact
This latest selldown follows a significant transaction in December last year, when Hafnia completed its acquisition of 14.2 million Torm shares from Oaktree. That deal, first announced in September, saw Hafnia buy the shares at $22 each for a total of $311.4 million, giving the BW Group-backed tanker owner a 14.45% stake in Torm.
The reduction in Oaktree's holdings has also altered Torm's corporate governance. In January, Torm announced that Oaktree's ownership had fallen below the one-third threshold specified in the company's articles of association, extinguishing the position and authority of the B-director. As a result, David Weinstein, who had served as deputy chairman and senior independent director, left the board.
| Transaction | Shares | Price per Share | Total Value | Buyer/Broker |
|---|---|---|---|---|
| Current filing | 3.5 million | ~$29.49 implied | $103.2 million | Morgan Stanley (broker) |
| Hafnia acquisition (Dec 2023) | 14.2 million | $22.00 | $311.4 million | Hafnia (buyer) |
Market Implications for Shipping Finance
Torm, listed in Copenhagen and New York, operates a fleet of more than 100 product tankers on a fully-delivered basis. The ongoing reduction of Oaktree's stake represents a notable shift in the shareholding structure of a major tanker owner. For finance executives and investors tracking trade-affected markets, such selldowns can influence the cost of equity capital for shipping companies and signal changing private equity appetite for the sector. While the sale does not directly affect Torm's operational cash flows, it may impact stock liquidity and investor perception. The transaction's execution via Morgan Stanley suggests a broad market placement, likely targeting institutional investors.
As the company continues to operate its large product tanker fleet, the evolution of its ownership base—moving from a concentrated private equity holder to a more diverse shareholder register—may have implications for corporate governance and strategic direction. The removal of the B-director position further streamlines Torm's board structure.
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