Andreas Sohmen-Pao's BW Group is looking to sell off a chunk of its position in DHT Holdings amid a strengthening tanker market.
BW could move as many as 14.68 million of its 48.8 million DHT shares in an underwritten public offering, DHT said.
On Monday, the tanker owner's New York-listed shares closed at $7.52, down $0.20. At that price, Singapore-based BW would come away with $110.4m.
For the third quarter, DHT posted a $9.3m loss, but said its VLCCs were earning an average rate of $61,500 per day with 49% of spot days booked for the fourth quarter.
The news was lauded by analysts as a bellwether for an improving tanker market ahead of the IMO 2020 emissions regulations kicking in 1 January.
Over the last three months, DHT shares have rallied from $5.27 to a high of $7.91, a 52-week high.
The offering is being underwritten by Pareto Securities.
Should BW sell the entire offering, it will be left with 34.2 million DHT shares, or 23.3% of the company.
The move comes 10 months after BW reported increasing its stake to 31.1%.
$538m deal
The company gained its spot as the Oslo-based tanker owner's largest shareholder in 2017 as part of a $538m deal that saw DHT take over BW's VLCC fleet.
The pullback from this tanker investment comes as BW has been seen shifting some of its stock investment portfolio in the LNG space.
As TradeWinds reported last week, BW emerged as the owner of 560,000 shares in New York and Oslo-traded Flex LNG, which is good for just about 1% of the company.
Eric Martin contributed to this story.
