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    Is TORM’s (CPSE:TRMD A) Governance Shake-Up Quietly Rewriting Its Long-Term Control Narrative?

    Simply Wall St·01/08/2026 18:45:14
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    • TORM plc recently confirmed that Oaktree Capital Management’s ownership has fallen below the one-third threshold, extinguishing the B-Director role, prompting Deputy Chairman and Senior Independent Director David Weinstein to leave the Board on January 6, 2026, while staying on as Special Advisor.
    • Alongside this, TORM is redeeming and cancelling its B- and C-shares, simplifying its capital structure and consolidating voting power into 101,332,707 A-shares and a single remaining B-share until redemption.
    • We’ll now examine how the unwinding of Oaktree’s special governance rights and the streamlined share structure reshape TORM’s investment narrative.

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    What Is TORM's Investment Narrative?

    To own TORM today, you need to be comfortable with a tanker business where earnings have come off peak levels, forecasts point to softer revenue and profit ahead, and a very generous dividend is not well covered by free cash flow. The recent unwinding of Oaktree’s special rights and the redemption of B- and C-shares mostly reshapes governance, not day-to-day operations, so it is unlikely to move the near term earnings or rate-driven catalysts that matter most. What it does do is remove Article 137 constraints and simplify voting, which could make capital allocation decisions, including dividends and fleet moves, more straightforward under the new chair. At the same time, investors are left weighing low valuation multiples against shrinking margins, forecasts of declining earnings and high insider selling.

    However, one governance change could alter how capital allocation and board oversight evolve from here. TORM's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

    Exploring Other Perspectives

    CPSE:TRMD A 1-Year Stock Price Chart
    CPSE:TRMD A 1-Year Stock Price Chart
    Fifteen Simply Wall St Community fair value views span roughly US$10 to over US$400 per share, underlining how far opinions can diverge. Set that against TORM’s weaker recent margins and forecast earnings pressure, and you can see why it pays to test your own thesis against a range of views.

    Explore 15 other fair value estimates on TORM - why the stock might be worth less than half the current price!

    Build Your Own TORM Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your TORM research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.
    • Our free TORM research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate TORM's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.