Navig8 has continued to build its ownership in Awilco LNG to nearly one-fifth of the company after more share purchases.
The tanker group revealed a 6.2% holding in the Oslo-listed owner of two LNG carriers earlier this month, before adding more stock this week to reach nearly 13.9%.
On Friday, Awilco LNG said the group's private investment company Navig8 Topco Holdings had snapped up another 7.64m shares.
Now, Navig8 Topcohas 19.6% of the LNG carrier owner.
Navig8 Topco was already the second-biggest shareholder, after Awilco AS on 38.6%
The company has not commented on its plans for Awilco LNG, which itself has not responded to TradeWinds' request for comment.
The deals marked an indirect entry by the tanker group into LNG shipping.
Navig8's interest in Awilco LNG has continued to drive up the share price, with the stock gaining another 5% at NOK 1.32 ($0.13) on Friday morning.
The stock had closed at NOK 1.25 on Thursday, meaning Navig8 spent around $1m on the additional shares.
Awilco LNG has now revealed details of some of the sellers.
Its fifth biggest shareholder, Norwegian shipbroker Astrup Fearnley, sold all its 8.69m shares on Thursday. It had previously owned 6.56%.
On Wednesday, the third biggest investor, Strawberry Capital, with 8.56%, also sold out, offloading 11.21m shares.
UK lender Barclays Bank also increased its ownership last week to 6.09% from 4.58% by adding 2.2m shares pledged as collateral, a process known as re-hypothecation.
Stock upgraded
Cleaves Securities head of research Joakim Hannisdahl said on Thursday: "We will not speculate what the goal is, but priced at a large discount to steel, Awilco is an obvious merger and acquisition (M&A) candidate."
He has upgraded the stock to hold from sell, with a target price of NOK 1.40, as liquidity concerns are balanced by the M&A potential.
Last August, Navig8 Topco Holdings, registered in the Marshall Islands, posted net profit of $6.9m in the quarter to 30 June, against $2.2m in the same period of 2018.
The fleet of 20 owned or partially owned LR1s, LR2s, MRs, bunker tankers and a VLCC brought in revenue of $774m, compared to $699m in 2018.
The Navig8 group owns 57 tankers and offshore vessels, with many more operated by its pools.
