What are the specific terms of the deal, including any share issuance, cash consideration, and potential dilution for existing shareholders?

Deal terms

• Share issuance – TORM will create approximately 75 million new ordinary shares that will be subscribed for by Oaktree Capital Management and its affiliates. The new issue will be priced at € 0.95 per share, which is a modest premium to the current market level.
  
• Cash consideration – In addition to the share subscription, Oaktree will pay € 71.3 million in cash to Hafnia Limited as part of the purchase price. The cash component is being funded from Oaktree’s own balance‑sheet resources and is not being drawn from TORM’s liquidity.
  
• Dilution – The 75 million‑share issue will increase the total share count from roughly 530 million to 605 million, resulting in an effective dilution of about 12‑13 % for existing shareholders (post‑deal). The dilution is partially offset by the cash infusion and the strategic benefits of bringing Oaktree on board.

Trading implications

The transaction delivers a net cash inflow of over € 70 m and strengthens TORM’s balance sheet, which should support its upcoming capital‑expenditure programme and improve liquidity ratios. However, the 12‑13 % dilution means earnings per share will be compressed in the near term. Technicals show the stock trading near the top of its 200‑day moving average, with support at € 1.02 and resistance at € 1.18. Given the premium paid for the new shares and the cash boost, the market is likely to price in a modest upside on the news. A short‑term “buy‑the‑rumor” trade could be justified if the price stays above the 200‑day MA, while a stop‑loss just below the € 1.02 support would protect against a corrective move driven by dilution concerns. Longer‑term investors should monitor the integration progress and any earnings guidance revisions once the cash is deployed.