The Oslo Stock Exchange (OSE) looks set to lose another high-profile shipping name as Team Tankers International plans a delisting.
The board of the US-headquartered shipowner has decided to call a special general meeting on 13 July to consider the proposal.
Directors have concluded that the stock is "no longer considered suitable for continued listing."
"There are limited benefits in continuing with the listing on the OSE due to lack of trading volumes, few and concentrated shareholders, the low share price, costs, and challenges of a publicly quoted market price on the company's merger and acquisition and sale and purchase efforts," it added.
"Such matters are not offset by the benefits of the listing."
It has already received indications of support for the move from shareholders representing more than 90% of outstanding shares.
Team, which was created in a 2014 restructuring from Eitzen Chemical, expects the proposal will be approved at the July meeting.
An application for delisting will be submitted as soon as possible, it said.
No tender offer
There will be no voluntary tender offer for shares, as only a few months ago it concluded a share repurchase programme. It also wants to maintain a high level of liquidity due to current uncertainty surrounding the covid-19 pandemic.
"The board instead asks that any shareholder that does not wish to remain a shareholder of the company following the delisting and is not able to sell its shares prior to the delisting, to contact the company," it added.
The share price was trading up 1.7% on Friday morning at NOK 4.78 ($0.50).
It has been as high as NOK 7.65 in the past year.
The company has a market capitalisation of NOK 1bn, but a 30-day average volume of 15,100 shares traded.
The top three shareholders are JP Morgan Securities on 28.6%, Pershing on 19.8% and Euroclear Bank on 15.6%.
Team has 39 chemical tankers ranging from 8,000 dwt to 50,000 dwt, ranking among the 10 largest chemical tanker operators.
Star Bulk leaving Oslo
In April, Star Bulk carriers said it would delist in Oslo, with its last day set to be 31 July, after seeing what it considered insufficient trading over two years. It retains a New York listing.
Oslo has a reputation as the fast lane for shipowners interested in a public listing.
But not everything about trading in Oslo is easier or less transparent than doing business in New York.
TradeWinds has reported that more-stringent reporting requirements in the Norwegian capital surrounding buying back and selling shares was one important factor in the Greek shipowner’s decision to terminate its Oslo listing and revert solely to the New York Stock Exchange.
"Oslo requires different disclosures from the US, and Star Bulk had to satisfy both regimes. They considered it a pain," a source said.
The source added the requirement to disclose share transactions immediately, rather than in a quarterly filing, made share buybacks and at-the-market (ATM) offerings harder to do at an "advantageous price".
Team's net profit in the first quarter was $1.4m, against a net loss of $7.9m in the same period of 2019.
Revenue was down at $79.7m from $83.5m, but the owner reduce operating and voyage costs.
