Hemen Holding Limited Sells Stake in Golden Ocean Group Limited
In a significant move within the drybulk shipping industry, Hemen Holding Limited has announced the sale of 81,363,730 shares in Golden Ocean Group Limited (NASDAQ/OSE: GOGL) to CMB.TECH (NYSE: CMBT). This transaction, valued at approximately USD 1,179 million, allows Hemen to divest around 40.8% of Golden Ocean’s outstanding shares and votes, effectively transferring its complete interest in the company.
The Scope of the Transaction
Hemen’s divestiture of its substantial stake does not trigger any mandatory takeover offers in various jurisdictions including Bermuda and Norway. Additionally, the transaction is exempt from registration under the U.S. Securities Act of 1933, simplifying the process significantly.
Golden Ocean's Remarkable Growth Journey
Hemen has been instrumental in Golden Ocean's expansion since it was spun off from Frontline back in 2004. Under Hemen’s stewardship, Golden Ocean made its mark with listings on the Oslo Stock Exchange, followed by a notable merger with Knightsbridge to strengthen its presence on NASDAQ.
Strategic Acquisitions and Fleet Expansion
In its efforts to establish a leading fleet, Golden Ocean has adeptly acquired various vessels, elevating its fleet size from a mere 3 to an impressive 91 vessels. This tremendous growth has positioned Golden Ocean as one of the largest publicly listed owners of modern drybulk carriers.
Acknowledging Shareholder Value
Since its inception, Golden Ocean has returned significant value to shareholders, with cumulative dividends exceeding USD 2 billion. The commitment to rewarding investors showcases the company’s robust operational success and strong market position.
CMB.TECH's Entry into Golden Ocean
Christakis Theodoulou from Hemen expressed his satisfaction regarding the transaction, emphasizing that an esteemed drybulk operator like CMB.TECH recognizes the enduring value that Golden Ocean represents. This acquisition signifies a vote of confidence in Golden Ocean's capabilities and future prospects.
Transaction Completion Timeline
With no conditions imposed on the transaction, Hemen anticipates completion by March 12, 2025. This clear timeline indicates a smooth transition as CMB.TECH steps in as a significant stakeholder.
Advisors Involved in the Transaction
DNB Markets, part of DNB Bank ASA, served as the financial advisor to Hemen during this pivotal transaction, while Advokatfirmaet Schjødt AS provided legal counsel, ensuring all aspects of the sale were professionally managed.
Frequently Asked Questions
What prompted Hemen's decision to sell its stake in Golden Ocean?
Hemen's decision to sell is part of a strategic move to allow CMB.TECH, a recognized player in the drybulk industry, to leverage Golden Ocean's strengths and assets.
How much of Golden Ocean does Hemen currently hold?
Hemen is divesting approximately 40.8% of Golden Ocean’s outstanding shares and votes in this transaction.
What does this sale mean for shareholders of Golden Ocean?
This sale is expected to positively influence shareholder sentiment, as it reflects the ongoing confidence in Golden Ocean’s potential for growth and profitability.
When is the transaction expected to close?
The completion of the transaction is projected to take place by March 12, 2025.
Who are the advisors for Hemen in this transaction?
DNB Markets acted as the financial advisor, and Advokatfirmaet Schjødt AS provided legal advice during the transaction process.
