Norway's Stolt-Nielsen remains keen to spin off its tanker operations but an initial public offering for its fish farming business has been axed.
The group's chief executive Niels Stolt-Nielsen told a conference call with analysts that he is still waiting for the right time to pull the trigger on an IPO for Netherlands-based chemical carrier company Stolt Tankers.
"I've said it on several occasions that I think that [a] step towards a sustainable industry in the chemical... segment is further consolidation, and that's why we are looking at doing an IPO," he said.
"We would like to separate our tankers at the right time," he added.
The CEO stressed that his firm doesn't have to carry out a spin-off. "We are in a very flexible situation," he said.
A way to grow
A Stolt Tankers IPO would happen "at the right time... so that we can pursue further consolidation opportunities", he explained.
The idea is to use the company's balance sheet to move forward with deals, as well as to make its tanker operation a standalone company.
The group has been working on separating out Stolt Tankers and cleaning up the corporate structure since taking over Jo Tankers five years ago for $575m.
In order to move forward its plans for the IPO, Stolt Tankers brought in Emile Hoekstra as its first chief financial officer in February this year — an experienced executive formerly with Shell.
Last year, Stolt Tankers also joined forces with John T Essberger of Germany to form E&S Tankers, which has a fleet of 48 chemical carriers.
The emphasis now will be on acquisitions rather than on any further joint ventures, management indicated.
Flotation plans for the group's Stolt Sea Farm unit, meanwhile, are on the back burner.
The Oslo-listed group started exploring an IPO for its fish farming business earlier this year. This process has stopped, however, after management received disappointing indications of the unit's likely value, Stolt-Nielsen said.
No desire to sell
"I'd like to remind the market that the reason we went and explored the opportunity to do [an] IPO for Stolt Sea Farm is not because we want to sell the company," he explained.
The intention was rather to attract more investor interest in the operation, as the group felt it was hidden among its tanker and tank terminals businesses.
"We think that this company has the biggest growth potential amongst our businesses," Stolt-Nielsen said, adding: "It is our obligation to see and make the underlying value [of] Stolt more transparent."
The Norwegian firm has been highlighting Stolt Sea Farm as a characteristic example of the several "underlying things" of value on its balance sheet, which remain unreflected in its share price.
The CEO said the scrapping of the listing plan does not mean it has been given up for good.
"For the time being it's been on hold but we'll keep an open mind and maybe pursue at [a] later... stage."
An IPO for Stolt Sea Farm appeared possible in the first half of 2021, but a deal was crowded out by bigger transactions, the company said.
