The Tung family has taken a stake in GasLog.
The New York-listed gas carrier owner announced on Monday that it had raised $36m through the sale of 14.4m common shares at $2.50, primarily to its directors and affiliates.
The company declined to elaborate on the holding by the Tungs — whose patriarch, Tung Chao Yung, founded Orient Overseas Container Line (OOCL).
GasLog chief executive Paul Wogan paid tribute to the Tung family's "long maritime history and roots in Asia".
"We look forward to working with them to deliver the value inherent in the GasLog fleet and our leading operating and commercial platform," he added.
Beyond the Tung family, Blenheim Holdings, which is wholly owned by the Livanos family, acquired a further 6.5m shares, boosting Peter Livanos' controlling position to more than 39m shares, or more than 40%.
The Onassis Foundation, which already owned 7.16m shares, or 8.9%, bought 4m.
The issue was announced on 6 May in an effort to "increase liquidity and further strengthen the capital structure of GasLog".
The funds will be used for general corporate purposes.
Good and bad
GasLog shares closed down nearly 7% at $2.96 on Monday.
Over the past 52 weeks, it has traded between $2.67 and $15.16.
Its shares opened the New Year at $9.78 and have fallen since amid the Covid-19-fuelled economic downturn.
Fearnley Securities has a hold rating on the stock, due to its soft spot outlook through to 2022.
Regarding the issue, Fearnley said: "The good part is that these proceeds plus a pending bank refinancing freeing about $50m should go a long way in fixing the near-term liquidity situation.
"This is especially true if GasLog also can retrieve the circa $60m tied to interest swaps amassed during the volatile month of March."
But it added: "The bad part is the discerning treatment of shareholders (placement done at 22% discount to close Friday) and whether these proceeds are enough if present rates ($20,000 to $25,000 per day) mark the start of another downturn in the spot market."
Fearnley said GasLog remains highly levered.
Tung founded OOCL in Hong Kong in 1969, having fled from Shanghai after the Communist Party of China rose to power.
His son, Tung Chee Hwa, took over the company in 1979. Grandson Andy served as chief executive from 2012 until 2018, before holding the position jointly until December 2019.
