Tanker operator Hafnia Limited has reached an agreement to purchase approximately 14.1 million A shares in TORM plc, representing about 14.45% of TORM’s issued share capital, for $311.4 million, reports Investing.com
Hafnia’s strategic move to acquire 14.45% of TORM
TORM, a $2.2 billion market cap company currently rated “GREAT” by InvestingPro’s Financial Health metrics, appears slightly undervalued based on Fair Value analysis.
According to a press release statement issued Wednesday, Hafnia will acquire the shares from Oaktree Capital Management, L.P. and its affiliates, the controlling shareholder of TORM, at $22 per share. TORM currently trades at an attractive P/E ratio of 6.4x and offers a substantial 12% dividend yield.
The transaction remains subject to the parties entering into a definitive agreement and fulfilling customary conditions, including obtaining required regulatory approvals and the appointment of a new independent board chair of TORM.
Hafnia described TORM as “a well-managed company with a high-quality fleet” and noted that while it believes industry consolidation is generally positive for the tanker sector, it has made no decisions regarding its long-term position as a TORM shareholder. With a healthy current ratio of 2.57 and last twelve months revenue of $1.32 billion, TORM demonstrates strong financial fundamentals. InvestingPro subscribers have access to 10+ additional key insights about TORM’s financial health and growth prospects.
The company stated there is no guarantee that this investment will lead to any further proposal, agreement, or transaction. Hafnia also clarified that any potential future transaction would not be structured as an offer for TORM under the UK Takeover Code.
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Source: Investing.com
