Norwegian shipmanager OSM Maritime has continued its recent expansion with a deal to acquire Frontline and Golden Ocean Goup's in-house shipmanagement company.
It is in final talks to complete a takeover of SeaTeam Management, owned by the John Fredriksen tanker and bulker giants.
The deal will see 51 Frontline and Golden Ocean ships added to the OSM roster, as well as highly qualified personnel.
Headquartered in Singapore with offices in India and the Philippines, SeaTeam employs a staff of 2,000, including 1,900 seafarers. The company was established in 2009.
"It's very exciting and very positive," OSM Maritime executive chairman Tommy Olofsen told TradeWinds.
"We are taking over a quality organisation with a proven track record. This can only strengthen OSM. It's important that a world-leading company trusts us."
Partnership developed further
Olofsen said OSM currently manages a number of Fredriksen-controlled vessels, mainly bulkers out of Singapore for Golden Ocean.
Asked how the current deal came into focus, he added: "It was an ongoing joint discussion. The opportunity arose out of our existing operations, and we started exploring it. Luckily we found a good match."
OSM has been very active in recent months. Earlier in September, it took over the management of GC Rieber's six offshore ships, and in June it added 37 vessels from the fleet of Kristian Gerhard Jebsen Skipsrederi.
Olofsen told TradeWinds: "Luck is important. Luck has played a big role in all these deals falling into place. You could say we are taking a consolidation role."
In-house moving out
But he added that OSM has identified a growing trend for shipowners to find opportunities to make their operations more efficient by moving in-house management operations to established shipmanagers.
"The match between shipowner and manager is very important and we are happy to support this," Olofsen said. "There are real opportunities in the market."
The acquisition is expected to be completed within the next 30 days.
"This transaction demonstrates Frontline’s ongoing commitment to maintaining a lean organisation without diminishing the earning capability of our tanker fleet," said Frontline chief executive Robert Hvide Macleod.
"We have a strong, trusting relationship with OSM and are very comfortable putting the shipmanagement of our fleet in their capable hands. The addition of SeaTeam’s personnel to OSM will also ensure the transition is seamless to us."
Helps low-cost operating model
Golden Ocean CEO Ulrik Andersen added that, with OSM taking over the bulker owner's in-house shipmanagement, the company will be able to consolidate management services. That supports the company's "low-cost operating model".
It also allows Golden Ocean to "continue to deliver on our strategy of focusing on our core business of owning and managing modern large-sized dry bulk vessels".
Arendal-based OSM was founded by Bjorn Tore Larsen, who last year stepped away from the day-to-day running of the company, putting Olofsen in charge as chairman.
In 2018, Oaktree Capital Management took a 49% stake in OSM, with Larsen retaining his majority stake.
"The acquisition of SeaTeam will further reinforce OSM’s position in Asia, where more than 100 vessels will be managed out of Singapore," said Bjoern Sprotte, CEO of OSM.
"OSM will thereby have two equal and highly competent management organisations in northern Europe and Singapore respectively, servicing its customers in these regions."
