Fish processing company Samherji is launching a takeover of Icelandic container line Eimskip after becoming its biggest shareholder this month.
The North Atlantic vessel operator said it was told by the compatriot group that it had built its stake from 3.1% to 30.1%.
Samherji, the country's biggest fishing company, will now make an offer to other shareholders for their stock within four weeks.
Its chief executive, Bjorgolfur Johannsson, said the group's objective is "first and foremost to demonstrate the belief that Samherji has in Eimskip’s operations".
He said recent operational improvements have yet to materialise.
"It is my understanding that the board of directors and the management of Eimskip have been aligned in the recent structural and operational changes," Johannsson said.
Samherji sweet-talks investors
"Samherji believes Eimskip is well fit to continue to be listed on the stock exchange and hopes that majority of current shareholders, both large and small, share that belief and will continue to support the development of the company in the years to come."
Eimskip operates 16 boxships and reefers, plus a ferry.
It is majority owned by Icelandic pension funds that collectively hold more than 50% of the share capital.
It has a market capitalisation of ISK 27.9bn ($217m).
The shares were trading up more than 10% at ISK 149 in Reykjavik on Wednesday.
As of 27 February, the next two biggest shareholders were the Verslunarmanna, which controls 14.9%, and Gildi pension funds, which have a 13.4% stake.
Eimskip itself holds 2.8% of its own shares. It is not commenting on the situation.
Newbuildings delayed
The company has two 2,150-teu boxships on order at Huangpu Wenchong Shipbuilding in China, but a sea trial team has been unable to reach the vessels due to coronavirus, causing further delays to their delivery this year.
Eimskip last month signalled lower profit for 2019 as volumes drop and it closed down an office in Belgium.
The company said Ebitda will come in below management expectations at between €49m ($54m) and €50m, against its previous guidance of between €52m and €55m.
This is based on preliminary figures for the final three months of the year.
There were higher than expected one-off expenses related to the closing of Eimskip’s office in Belgium.
In November, it revealed it had cut 55 jobs as it closed and merged offices.
The company said it decided during the third quarter to shut its base in Belgium and integrate part of the operation into the Rotterdam office.
In December, Eimskip sold two of its oldest containerships for a combined $3.9m.
The 1,457-teu Godafoss and Laxfoss (both built 1995) will be chartered back to Eimskip, which operates them on its Red Line service, connecting Iceland to Scandinavia.
This brought the number of ships offloaded that month to five, after it also rid itself of three veteran reefers.
Eimskip was restructured in 2009, when it went private after being handed over to creditors. It had run up big debts through diversification.
But it 2012 it carried out an IPO and was relisted in Iceland.
Samherji was founded in Grindavik in 1972.
