WASHINGTON (dpa-AFX) - Overseas Shipholding Group, Inc. (OSG), a provider of liquid bulk transportation services for crude oil and petroleum products, and Saltchuk Resources, Inc., a privately held multi-purpose company, announced on Monday that they inked a merger deal to allow Saltchuk to acquire OSG for $950 million.
Under the terms, Saltchuk will commence a tender offer to acquire all shares of OSG for $8.50 per share in cash. The acquisition will be funded through a combination of debt and cash on hand.
The purchase price represents a 61 percent premium to OSG's 30-day volume-weighted average price on January 26, as well as a 44 percent premium to the January 26 closing price of OSG's stock, and a 36 percent premium to Saltchuk's initial indicative price of $6.25 per share.
Post transaction, OSG will operate as a standalone business unit within Saltchuk.
OSG was trading up by 20.26 percent at $8.25 in the pre-market trade on the New York Stock Exchange.
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