Oaktree Bails on TORM Stake Sale

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

The unexpected decision comes after Oaktree-owned OCM Njord Holdings S.à r.l. concluded that current market conditions are not favorable for the offering.

TORM announced the secondary offering of up to 5.75 million shares held by Njord Holdings on Wednesday, March 29, representing a portion of Njord Holdings’ approximately 65% ownership of TORM’s Class A common shares. The offer 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 may be completed.”

News of the sale sent to TORM’s stock crashing more than 12% during normal trading hours on Thursday.

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

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

TORM is one of the world’s leading carriers of refined oil products, operating a fleet of approximately 85 product tankers.

The offering was initially made under an effective shelf registration statement on Form F-3, declared effective by the U.S. Securities and Exchange Commission on December 22, 2021, and a related prospectus supplement filed on March 29, 2023.