Cyprus-based Hemen sells stake in Golden Ocean to CMB.TECH for $179m

Cyprus-based Hemen Holding Limited, the largest shareholder in Cyprus-domiciled crude oil international seaborne transportation leader Frontline, has entered into an agreement to sell 81,363,730 shares in Golden Ocean Group Limited to Belgium-based maritime group CMB.TECH for a total consideration of approximately $179 million.

Golden Ocean Group Limited is a Bermuda incorporated shipping company specialising in the transportation of dry bulk cargoes

According to a relevant announcement, the shares represent ca. 40.8% of Golden Ocean's outstanding shares and votes and includes all Hemen's shares in the Company.

"The Transaction will not trigger a mandatory takeover bid or similar offer in Bermuda, Norway, the United States, or any other jurisdiction.  The Transaction is exempt from registration under the U.S. Securities Act of 1933, as amended," the announcement underlines.

Christakis Theodoulou, Hemen, commented, "Hemen has been the driving force behind the development of Golden Ocean since the spin-off from Frontline in 2004 with subsequent listing on the Oslo Stock Exchange and later through the merger with Knightsbridge on NASDAQ. Through a series of successful acquisitions and purchases of new and secondhand vessels, Golden Ocean has since grown its fleet from 3 to 91 vessels, creating one of the largest listed owners of large size modern drybulk vessels, while at the same time returning value to its shareholders in the form of dividends. Golden Ocean has in total paid out USD ~2 billion of dividends since the spin-off from Frontline in 2004.

Hemen is now pleased to see that a renowned drybulk owner and operator with a rich history such as CMB.TECH recognises the strength and the value of the Golden Ocean platform and its employees and has substantiated this through an acquisition of our shares."

The Transaction is not subject to any conditions, and completion is expected to take place on 12 March 2025, the announcement also noted.

DNB Markets, a part of DNB Bank ASA, has acted as a financial advisor to Hemen. Advokatfirmaet Schjødt AS has acted as legal advisor to Hemen.

Speaking to GOLD magazine in 2023, Norwegian-born Cypriot oil tanker and shipping billionaire businessman John Fredriksen, one of the biggest figures in the shipping industry, and who was the CEO of Frontline at the time, outlined the reasons behind Frontline’s redomiciliation to Cyprus.

"We enjoy a longstanding relationship with Cyprus – the Seatankers Management Company has operated from the country since 1986," Fredriksen said.

"Moreover," he continued, "Cyprus is hugely attractive to shipping companies for a number of reasons, including the country’s highly educated and skilled workforce, its robust legal and regulatory framework with Cyprus being an EU member, the stable political environment, as well as its attractiveness to foreign direct investment (FDI). For example, Cyprus leapt 50 places in the 2022 Greenfield FDI Performance Index. The decision to redomicile Frontline was, therefore, a relatively simple one."