Nordic American Tankers (NAT) is to increase its stake in Nordic American Offshore (NAO) by 6.7% through the acquisition of 1,521,300 shares. The NAO shares were bought in a private transaction concluded today at a price of $6.25 per share or $9.5m in total.

Nordic American Tankers increases shareholding in NAO

Image: Ingrid Vershuren

The acquisition will increase NAT’s shareholding in the company from 19.8% to 26.5%, and will bring NAT’s ownership stake up to 6,018,280 shares in total.

This is the same proportional stake that NAT had in the company when NAO was established in autumn 2013 and listed on the Oslo over-the-counter (OTC) exchange. NAO listed on the New York Stock Exchange in June 2014 and currently has 22,729,797 shares outstanding.

“This transaction is an evidence of our belief in the NYSE-listed Nordic American Offshore, which is built on the same strategic principles as NAT,” Herbjorn Hansson, NAT’s chairman and CEO, said in a statement. Hansson is also executive chairman and president of NAO.

In March this year, Hansson and his son Alexander bought 50,000 shares in NAO.