John Fredriksen Reduces Seadrill Stake
Norway-listed, Bermuda-based oil rig operator Seadrill Ltd. today [Mar.1] said that its chairman, Norwegian-born billionaire John Fredriksen [pictured], will cut his stake in the company.
The deepwater drilling company said Hemen Holding Ltd., a company controlled by trusts established for the benefit of Fredriksen’s family, will sell up to 24 million Seadrill shares to investors, leaving Hemen with a Seadrill ownership of around 23 percent, down from 28 percent.
Hemen’s current stake in Seadrill is worth around $5.6 billion and makes up a “disproportionately large part of the Fredriksen Group’s investment portfolio,” Seadrill said. The Hamilton, Bermuda-based company now represents around 63 percent by value of the listed company stakes controlled by Hemen.
The divestment will still leave Hemen as by far the largest shareholder in Seadrill, and will reduce Seadrill’s share of listed company stakes controlled by Hemen to 58 percent.
Seadrill said shipping tycoon Mr. Fredriksen will remain as chairman and is committed to the successful development of the company over the long term.
The main reason for the sale is for the Fredriksen group to diversify its investment portfolio and the deal will enable the group to “aggressively pursue investment opportunities in the currently oversupplied market for commodity shipping,” the company said.
“Such opportunities include buying distressed asset companies, ordering new buildings and seek opportunities for consolidation,” the company said.
Hemen has agreed not to sell further shares in Seadrill for a period of one year, Seadrill said.
