DHT Holdings Inc (DHT): Anchorage Capital Reduces Activist Stake To 2.90%

DHT Holdings Inc (NYSE:DHT) is an independent crude oil tanker company, with a market cap of more than $820 million. The company reported a net loss of $7.1 million, or $0.10 per share, for the third quarter of 2014, compared to a net loss of $4.1 million, or $0.26 per share, in the same quarter of 2013. Net revenue for the quarter was $21.8 million, up from $11.2 million in the same quarter of 2014.

At the end of the third quarter of 2014, DHT Holdings Inc (NYSE:DHT) completed the acquisition of Samco Shipholding Pte. Ltd., a private company incorporated that owns and operates a fleet of seven very large crude oil tankers (VLCCs). The deal also included Samco’s 50% ownership in Goodwood Ship Management Pte. Ltd., a private ship management company incorporated under the laws of the Republic of Singapore. Goodwood currently manages all of DHT Holdings Inc (NYSE:DHT)’s vessels. As a result of the acquisition, DHT Holdings Inc (NYSE:DHT) now has a fleet of 20 VLCCs, two Suezmaxes and two Aframaxes. DHT Holdings Inc (NYSE:DHT) obtained a committed and underwritten offer from affiliates of Nordea Bank AB and DNB Bank ASA to refinance Samco’s debt at a rate of LIBOR plus 2.5%, with leverage and repayment profiles consistent with DHT’s other debt facilities.

In connection with the acquisition, DHT Holdings Inc (NYSE:DHT) issued 23.1 million shares of common stock at a price of $6.50 per share and $150 million principal amount of convertible senior notes due 2019 with a fixed rate of 4.5% per annum and convertible into common stock of the company at a conversion price of $8.125 per share.

DHT Holdings Inc (NYSE:DHT) currently trades at around $9. The company’s stock has shown a great performance during last year. Year-do-date performance of the stock stands at 23.67%, and six-month performance stands at 35.94%. The stock has a 52 week high of $9.22, and a 52 week low of $5.20. The consensus average target price is $10.65 for the company’s stock, while the consensus average recommendation is ‘BUY.’

Other shareholders betting big on DHT Holdings Inc (NYSE:DHT) include Cerberus Capital Management, led by Stephen Feinberg, which holds 7.63 million shares, and Canyon Capital Advisors, run by Joshua Friedman and Mitchell Julis, which owns 7.08 million shares of the company. Another investor, Christopher Pucillo’s Solus Alternative Asset Management disclosed ownership of 6.21 million shares of DHT Holdings Inc (NYSE:DHT), as of the end of the third quarter of 2014.

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