Trafigura has taken its stake in Frontline as part of its blockbuster deal to sell the John Fredriksen company more than a dozen tankers.
The Swiss commodities trader disclosed its 16 million share stake in the New York-listed shipowner in a Securities and Exchange Commission filing Tuesday.
Eleven days ago, Trafigura agreed to sell Frontline 10 scrubber-fitted, 2019-built suezmax tankers for a total of $675m in cash and shares.
Frontline has options on another four, for a total of 14.
The deal makes Trafigura the second-largest shareholder in Frontline behind Fredriksen, who holds 79 million shares through Hemen Holding.
It pushes Norway's government pension fund manager Folketrygdfondet to third, with 6.6 million shares and New Jersey-based Evermore Global Advisors to fourth with 5.1 million shares.
The deal will see Frontline time charter all 10 ships at $23,000 per day until the transaction closes. Frontline will them charter five of those ships back to Trafigura on three-year charters at $28,400 per day plus a 50% profit share.
The move also follows a mid-August announcement that Trafigura, Frontline and Fredriksen-backed Golden Ocean Group were teaming up to create a bunker joint venture.
