Accusations fly between Norwegian-Cypriot shipping magnate John Fredriksen, who has become the largest shareholder of International Seaways, and the US tanker carrier’s board of directors.
Accusations fly across the table in a stock exchange battle between Norwegian-Cypriot shipping magnate John Fredriksen and the board of US-based crude oil and product tanker carrier International Seaways, in which Fredriksen has become a major shareholder.
In an open letter, Fredriksen accuses the management of International Seaways of not creating sufficient value for the tanker company’s shareholders.
The letter was sent by Famatown Finance, part of the Fredriksen-controlled Seatankers Group.
”International Seaways’ share price and return to shareholders has for a prolonged time underperformed relative to peers […] the Seatankers Group is confident it could help unlock further shareholder value in International Seaways,” reads the letter to the US carrier’s board of directors.
The Seatankers Group is confident it could help unlock further shareholder value in International Seaways
Famatown Finance
Since the end of April, Famatown Finance has been buying shares in International Seaways and now sits on 16.6%, making it the largest single shareholder in the tanker carrier.
This has made the board at International Seaways implement a number of limitations, which Fredriksen calls a ”poison pill.” It means that all major shareholders who attain an ownership stake of 17.5% or more without the approval of the board will be ”diluted.”
”Extremely disappointed”
In the letter to the board, Famatown Finance writes that the ”Seatankers Group was therefore extremely disappointed with International Seaways’ recent implementation of a poison pill, which was adopted without shareholder approval and without any material dialogue with the Seatankers Group.”
Conversely, the board at International Seatankers today, Wednesday, countered Fredriksen’s accusation that the carrier isn’t being managed well enough to look after shareholder interests.
In a press release, the board denies that the carrier doesn’t create shareholder value, referring to last year’s acquisition of tanker company Diamond S, which ”doubled our net asset value, tripled our fleet size, and enhanced our earnings power.”
Fredriksen has floated the idea that the International Seaways board be expanded with two members, whose appointment Seatankers Group would partake in. But the board doesn’t comment on that in its statement at all.
Concurrently with his stake acquisitions in International Seaways, Fredriksen has become a major shareholder in Belgian tanker carrier Euronav, which he seeks to merge with his own company Frontline. Both boards of directors are in favor of merging, but the process is being resisted by major shareholder the Saverys family through shipping company CMB.
