Finland’s Viking Line has spent €10.3m ($10.54m) to become the major shareholder in loss-making compatriot shipowner Rederiaktiebolaget Eckero.
The cruise ferry and ro-pax group said it acquired 17.1% of the shares at €30 each.
The company explained that it had received information that a large stake in Eckero was up for sale.
In order to ensure that ownership stayed on the island of Aland, Viking Line chose to acquire the stock, it added.
Viking Line chief executive Jan Hanses told TradeWinds Viking Line will become the biggest single shareholder.
The company had no shares in Eckero previously, he added.
"Eckero is a well-run and well-regarded shipping company whose main ownership is welcome to remain on the Aland Islands," the CEO said.
Eckero has been contacted for further comment.
“The acquisition of the shares does not give reason to reconsider Viking Line’s profit forecast for 2022,” Viking Line said.
The deal is being financed with its own cash resources.
Loss reduced
Eckero’s net loss in the first half of 2022 was cut to €221,000 from €1m in the year-ago period.
Revenue grew to €51m from €27m, but the bottom line was hit by financial costs of €1.2m.
Subsidiary Eckero Shipping said earlier this month that it had reduced its ro-ro fleet to one vessel by agreeing to offload two veteran cargo ships.
It is selling the 1,278-lane-metre Croatian-built Exporter (built 1991) and Shipper (built 1992) to Norwest Ship Management of Norway.
The parent Eckero Group retains two ro-paxes and a cruise ferry.
VesselsValue assesses the fleet as worth $78m.
