One of shipping’s great guessing games finally appears to be nearing resolution.
The question of who would take control of John Fredriksen’s $13bn empire and extensive shipping assets as he considers stepping back has had as many twists as a classic Norse saga.
This story is one of 30 profiles in a special edition of our TW+ magazine.
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TradeWinds reporters have profiled 30 personalities who have shown traits that we think mean they will influence the directions the shipping industry takes, maybe not quite as far forward as the next 30 years, but certainly over the next decade.
Read all the profiles when TW+ is published on 16 October.
Trusted lieutenants of the 76-year-old Norwegian magnate have arrived, risen and gone, some abruptly. Indeed, one departed in police handcuffs, although it should be said he was later cleared of allegations unrelated to the Fredriksen group.
Even just 18 months ago, Fredriksen told TradeWinds that shipping was a tough life. “Shipping demands that you are switched on 24/7. For me, it is a lifestyle,” he said.
“But Cecilie and Kathrine [his daughters] shall not take over this role. We must find a way that they gradually can handle their ownership without having to follow the tanker, dry bulk and rig markets from hour to hour, every day, every year.”
Kathrine told TradeWinds’ sister publication Dagens Naeringsliv last year that it was true the siblings had no direct role in the family’s shipping and offshore holdings.
“However, this is part of the family’s overall portfolio which is of less and less importance,” she wrote in an email.
“In recent years, we have worked to diversify the portfolio and develop the organisation in Seatankers Management, which is the main company in the family structure.
“Today, the shipping and offshore business accounts for 20% of the family’s total activities. The other 80% is related to real estate, seafood and financial investments, and it is in these sectors that we work as active owners.”
Now finally in recent weeks, a clear structure has begun to appear.
Cecilie appears set to remain a key figure in the group’s seafood and property operations with roles at Mowi, the world’s biggest fish farmer, and real estate group Norwegian Property.
Giving the lead
But it is Kathrine’s voice that appears to be giving the lead in structures that hold Fredriksen’s extensive interests in tankers, dry bulk, LNG and rigs, although she will remain well above any day-to-day involvement.
In an announcement made in late August and signed by Kathrine and John Fredriksen, a 53-year-old Norwegian hedge fund manager and former commodity trader, Tor Andre Svelland, was appointed chief executive of Seatankers Group.
Privately held Seatankers is the biggest shareholder in Frontline, Golden Ocean, Seadrill, Mowi and Norwegian Property, as well as controlling Fredriksen’s significant private shipping interests and a large financial portfolio.
“The world is in the midst of extremely trying times,” Kathrine said. “This includes several of the industries we are involved in. However, Seatankers [is] very well positioned to play an active role in several of them. With Tor on board, I am sure we will navigate smoothly and successfully.”
Her father added: “We are very pleased to get Tor A Svelland on board. His vast and long experience as a manager and trader from various commodity markets, finance and not least shipping, will fit perfectly into our group.”
Days later, Seatankers announced another hire. Veteran Norwegian fund manager Vegard Soeraunet was recruited to broaden the group’s portfolio and bring in outside capital.
Fredriksen had promised such a move a year earlier in an interview with TradeWinds. “It would be nice eventually to transfer more responsibility and more of the ownership to others. I am looking for people who can take over,” he said.
“This has to be people who are more clever than me, think long term and who can take this further.”
With the new group management starting to crystallise, Kathrine Fredriksen’s asset allocation strategy will be closely watched as it shapes the family’s shipping and offshore portfolio in the decade ahead.
