Life Time Fitness CEO Bahram Akradi has bought a 5.3 percent stake in struggling Northern Oil & Gas, and it looks like he plans to be an activist investor.
Akradi has paid $16 million for 3.4 million shares of Wayzata-based Northern Oil, according to a Tuesday filing with the U.S. Securities and Exchange Commission.
In the filing, Akradi said "he expects to engage in discussion with management, the board and other shareholders of [Northern] and other relevant parties" about many aspects of the company, including its operations, management and financial condition. Akradi might buy more shares in Northern, too, the filing said.
Akradi could not be reached for comment on Tuesday.
Northern invests in oil leases and drilling projects in North Dakota. The company has been hammered by the drop in oil prices over the past two years, and lately has experienced top management turmoil, with its longtime CEO being forced out.
Northern's stock, which briefly topped $30 at its 2011 peak, is trading near its all-time low.
It closed Tuesday at $2.25, up 2 cents.
Akradi founded Chanhassen-based Life Time, one of the most prominent fitness chains in the Twin Cities. While not known for investments in the oil sector, Akradi said in an SEC filing that he believes Northern's stock is "undervalued and is an attractive investment."