Singapore-based product tanker giant Hafnia has agreed to acquire a 14.45% holding in Danish rival Torm from Oaktree Capital Management in a deal worth about $311.4m.

The BW Group-backed owner will pay $22 per share for the block of A-shares in the Copenhagen- and New York-listed firm. The transaction is subject to final documentation and regulatory approvals.

The sale will reduce Oaktree’s ownership in Torm to about 26.5%, down from roughly 41%. Hafnia stressed that the move is not a takeover or merger offer under UK rules, although it signals further consolidation in the mid-size tanker sector.

Hafnia, led by Mikael Skov (pictured), said it views consolidation as generally positive for the industry but has made no decisions on a broader combination with Torm. Skov himself previously spent 25 years at Torm, including two as chief executive.

Hafnia’s fleet stood at more than 120 vessels at the end of the second quarter, while Torm, under CEO Jacob Meldgaard, operates close to 90 ships. Both owners have strong operational and management links to Copenhagen.

Shipping analysts at SEB, a Swedish investment bank, noted the purchase price implies a price-to-NAV of around 0.94x and suggested any potential merger could be done on a NAV-for-NAV basis.

A combination would create a product tanker giant with an estimated NAV of $5.7bn and close to 200 ships, with Oaktree’s ownership reduced to just over 10%.

“Overall, we see a potential merger and improved liquidity of a combined entity as positive for both Hafnia and Torm shareholders,” SEB said in its note to investors.