Overseas Shipholding To Be Bought By Saltchuk For $950 Mln; OSG Up Over 20% In Pre-market

(RTTNews) - 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.