The two main backers of Klaveness Combination Carriers (KCC) have increased their holdings for a bargain price.
The Oslo-listed combination carrier company said parent Torvald Klaveness and Norwegian investor EGD Shipholding exercised warrants dating from 2018.
These were due to expire on 24 September, but a total of 215,068 were converted into the same amount of shares at NOK 23.40 each, meaning a total outlay of NOK 5m ($467,000).
The KCC share was trading at NOK 66.20 on Wednesday, allowing both companies to increase their stakes for little more than one-third of the price.
The number of KCC shares has grown to 60.46m from 60.24m as a result.
Parent Klaveness has a holding of 53.82%, up from 53.75% previously.
EGD Shipholding sold the new stock on to subsidiary EGD Shipping Invest, which is now the second-largest KCC shareholder with 9.69%.
In March, EGD Shipping Invest cashed in a batch of shares in the shipowner, cutting its stake from 16.81%.
The Norwegian investment company completed a sale of 3m shares through a private placement.
The price was not given, but the stock was trading at NOK 78 in Oslo at the time, meaning EGD banked a potential NOK 234m from the deal.
The share was NOK 47.50 five years ago.
First investment in 2016
EGD first invested in the KCC fleet in 2016 by taking a 50% stake in the 80,200-dwt Baffin (built 2016) and Ballard (built 2017).
In 2018, it invested $20m in KCC itself by taking 44% of a $45m private placement.
The company is represented on the KCC board by EGD head of shipping Magne Ovreas.
EGD Shipholding is the shipping subsidiary of EGD Holding, which is also involved in property and financial investments. The company has been controlled by the Galtung Dosvig family since 1907.
Espen Galtung Dosvig owns EGD Holding with 100% of the shares.
