Saltchuk Resources to take over Overseas Shipholding Group – Warungku Terkini

Privately owned Saltchuk Resources has agreed to take over the New York-listed operator of Jones Act tankers and oil tug barges, Overseas Shipholding Group (OSG). The deal gives OSG an aggregate equity value of about $653m and a total transaction value of $950m.

Saltchuk will acquire all outstanding shares of OSG it does not already own for $8.50 per share in cash, representing a 61% premium to OSG’s 30-day volume-weighted average price on January 26, the last day of trading before Saltchuk disclosed its non-binding indication of interest.

The Seattle-based owner of TOTE and Foss first moved on OSG in July 2021, only to suspend take-private talks, citing the uncertainty created by recovery from the covid pandemic on OSG’s business. Takeover talks were renewed in January, with Saltchuk, who owned about 21% of OSG’s at the time, offering $6.25 per share in cash.

OSG lists over 20 ships in its fleet, including suezmaxes, conventional and lightering articulated tug barges, shuttle and conventional MR tankers, and non-Jones Act MR tankers participating in the US Tanker Security Program.

Following the close of the transaction, OSG is expected to operate as a standalone business unit within Saltchuk.

Mark Tabbutt, chairman of Saltchuk Resources, said: “OSG has a strong cultural fit with Saltchuk and shares our commitment to operational safety, reliability, and environmental stewardship. On behalf of the Saltchuk organisation, we look forward to welcoming more than 1,000 members of the OSG team to our family of companies and growing the enterprise through multi-generational investments.”