More than $900m worth of shipping equity and steel value are in the balance as the market digests Oaktree Capital Management's new ownership, but initial expectations are a status quo for the affected companies.
That sum represents the combined value of Oaktree’s stock holdings in such listed owners as Star Bulk, Eagle Bulk, Torm, Capital Product Partners and Euronav, plus its share in the fleet value of Oslo over-the-counter trading Navig8 Chemical Tankers.
It reflects Oaktree’s widespread plays across the shipping landscape in the past decade.
But some of those names are now wondering what to make of Oaktree’s sale of a majority stake to Brookfield Asset Management in a $4.7bn deal last week.
“We’ve heard nothing at all," said one company executive approached by TradeWinds today.
A second manager echoed that, but added he doesn't expect much change, at least in the near- to medium-term.
“Brookfield is a massive asset manager, and from what we can see this is more a case where their investments are complementary — there's not much overlap between the two companies," he said.
"It's a way for Oaktree’s major investors to monetize their equity, but what they're said about keeping the investment fund separate and independent seems to suggest we’re not going to see a lot of change.”
The deal will see Brookfield take a 62% position in Los Angeles-based Oaktree, creating a $475bn asset manager.
Toronto-based Brookfield has shipping interests of its own in the offshore sector, with a controlling stake in Teekay Offshore and more than 76,000 shares in Tidewater.
Its 244 million shares and 59.5% stake in Teekay Offshore has a current value of some $290m.
Oaktree appears to have its greatest current investment value in Torm, the Danish product tanker owner, with 47 million shares and a 64.4% stake worth about $285.6m.
A 33.4% share in Petros Pappas-led Star, the Greek bulker owner, is worth some $208m, followed by a $124.5m holding and 36% share in Eagle Bulk.
Oaktree has smaller holdings in Euronav ($25.5m) and Capital Product Partners ($18.8m).
It is also partners with the Navig8 group in the OTC-traded chemical fleet which has a current steel value of $486m, according to VesselsValue.
Oaktree’s sale seems to have been popular with investors, as shares have shot up more than 10% since the deal announcement to just over $49 today.
Brookfield shares have registered a more-modest gain to just over $46 this afternoon.
