Shipowner John Fredriksen is set to tighten his grip on Oslo-listed LPG owner Avance Gas as the company reaffirmed its appetite for consolidation in the VLGC segment.
Not only has his private Hemen Holding doubled its shareholding to 18%, but the Norwegian tycoon's key shipping man, Marius Hermansen, is proposed as new chairman of Oslo-listed LPG carrier owner's board of directors.
Hermansen is poised to replace Stolt-Nielsen chief executive Niels Stolt-Nielsen, if shareholders approve the nomination at an annual general meeting next month.
Hermansen says there is no drama involved but rather a reflection of the new shareholder structure in Avance Gas.
The other two original shareholders of the company, Stolt-Nielsen and Sungas, have seen their Avance stakes whittled down to just 8.5%.
Hermansen says Avance believes in further consolidation in the VLGC segment having previously looked to buy both Dorian LPG and Aurora.
“Generally I will say we believe in consolidation in all segments we are involved in," he said. "It is a matter continuously on the agenda.”
Hermansen has worked 10 years for shipbroker Fearnleys and has also been a trainee at AP Moller-Maersk. In addition to heading Fredriksen’s shipping activities, he is temporarily managing director of his Flex LNG.
The company was formed in 2007 as a subsidiary of Oslo-listed Stolt-Nielsen. Prior to a listing in Oslo in 2014, Avance's shares were equally divided among Stolt, Sungas and Frontline.
Avance Gas has also also proposed that the former Stolt-Nielsen chief financial officer Jan Chr Engelhardtsen leave the board.
Niels Stolt-Nielsen told the daily Finansavisen he had proposed that a person from the Fredriksen system take over as chairman due to its position as leading shareholder.
Kate Blankenship, who sits on the boards of many of Fredriksen companies, is also up for re-election.
The changes come as Avance Gas shares have plunged 12.8% so far this year, while Oslo-listed rival BW LPG is down 10.6%.
Avance had a net loss of $12.3m in the first quarter this year, against a $13.6m for the last three three months of last year.
