I have no basis for this, but am wondering if SFL is just looking to pay down current debt. Perhaps, SFL is about to scrap some of the unprofitable vessels that FRO leases from them. Looking at the latest presentation on slide 7 we can see SFL has ~$445M in debt related to FRO.
8M shares @ $16.45 is $131.6M or about 29.6% of the remaining debt. I'm not sure how to determine the current scrap value of the vessels but this might make up the difference.
I don't see any reason for SFL to buy the two vessels FRO has under construction. They are looking to reduce exposure to FRO and crude carriers.
This is crazy. The FRO vessels are in runoff, no need to delever them or buy them in. All capital is going into the most promising sectors and to further diversify away from rigs and SeaDrill (if they need to diversify away from something, it is this, not FRO). These proceeds will be used to buy assets, makes no sense to delever at the bottom of the cycle.