Golden Ocean has sold most of its shares in rival dry bulk operator Navios Maritime Holdings at a loss of almost $12m.
The John Fredriksen company sold 3.9m shares in Navios at an average of $4.50 per share, raising $17.5m.
Golden Ocean said the disposal would result in a loss of $11.6m which would be included in the group’s second quarter results.
However, Golden Ocean said that as this loss had already been taken to equity before the sale of the shares, the net effect on the company’s balance sheet would actually be an increase of $8.5m in its equity.
Golden Ocean still holds 1.4m shares in Navios, which represents 1.4% of that company’s total outstanding shares.
The Oslo-listed company’s foray into the shares of its New York-listed rival placed a rare dent into Mr Fredriksen’s reputation as an investor with a supreme sense of timing.
Golden Ocean last year built up a stake of more than 5% in Navios just before the dry bulk freight market collapsed.
It acquired 5.3m shares at an average price of $9.10, or a total of $48.1m.
The share purchase was part of a bold plan by Golden Ocean to consolidate the dry bulk shipping sector which was scuppered by events in the freight market.
A few months after the Navios share purchase Golden Ocean had turned its attention to reducing its newbuilding exposure and securing a financing package in order to help the company survive a persistent downturn in the freight market.
The John Fredriksen company sold 3.9m shares in Navios at an average of $4.50 per share, raising $17.5m.
Golden Ocean said the disposal would result in a loss of $11.6m which would be included in the group’s second quarter results.
However, Golden Ocean said that as this loss had already been taken to equity before the sale of the shares, the net effect on the company’s balance sheet would actually be an increase of $8.5m in its equity.
Golden Ocean still holds 1.4m shares in Navios, which represents 1.4% of that company’s total outstanding shares.
The Oslo-listed company’s foray into the shares of its New York-listed rival placed a rare dent into Mr Fredriksen’s reputation as an investor with a supreme sense of timing.
Golden Ocean last year built up a stake of more than 5% in Navios just before the dry bulk freight market collapsed.
It acquired 5.3m shares at an average price of $9.10, or a total of $48.1m.
The share purchase was part of a bold plan by Golden Ocean to consolidate the dry bulk shipping sector which was scuppered by events in the freight market.
A few months after the Navios share purchase Golden Ocean had turned its attention to reducing its newbuilding exposure and securing a financing package in order to help the company survive a persistent downturn in the freight market.