Oaktree bails on TORM Stake Sale Ship’s crew

Asset management giant Oaktree Capital Management has abruptly ended the sale of 5 million Class A common shares to TORM plc (Nasdaq: TRMD or TRMD A), a leading tanker company, just a day after the sale was announced.

The unexpected decision comes after seller OCM Njord Holdings S.à rl, a company indirectly owned by funds managed by Oaktree, concluded current market conditions were not favorable to the offering.

TORM on Wednesday, March 29 announced the secondary offering of up to 5.750 million shares held by Njord Holdings, representing a portion of Njord Holdings’ approximately 65% ​​interest in TORM’s Class A common stock. The offering came with a disclaimer that it was “subject to market and other conditions and there can be no assurance as to whether or when the offering can be completed.”

News of the sale sent to TORM stock plummeted more than 12% on Thursday.

However, an update from TORM announced the termination of the offering Thursday after market close, causing TORM’s shares to gain more than 9% in after-hours trading as of 5 p.m. ET.

“The termination results from the selling shareholder’s assessment that current market conditions are not conducive to this offering on terms that would be in the selling shareholder’s best interests. As a result of such termination, no Class A common shares of the Company will be sold pursuant to the Offer,” TORM said in its termination notice.

TORM is one of the world’s leading shippers for refined oil products and operates a fleet of approximately 85 product tankers.

The offering was originally made pursuant to an effective shelf registration statement on Form F-3 filed by the US Securities and Exchange Commission on December 22, 2021 and a related prospectus supplement filed on March 29, 2023.

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