Tanker shipping company Overseas Shipholding Group (OSG) has received a non-binding acquisition offer from Saltchuk Holdings for a price of $3.00 per share.
As disclosed, the strategic process will be led by a newly formed special transaction committee of independent directors and is fully supported by the Board of Directors and the company’s management team.
The special transaction committee has engaged Evercore as its financial advisor and Ropes & Gray LLP as its legal advisor to assist the special transaction committee in evaluating strategic alternatives.
As of June 29, Saltchuk beneficially owned 15.2 million, or 17.5%, of OSG’s shares, the company said in its U.S. Securities and Exchange Commission filing.
Furthermore, funding for the acquisition of the shares would be through a combination of equity capital, minority capital provided by third parties, and a refinancing of Saltchuk’s existing debt obligations, the company claims.
OSG noted that its board of directors is evaluating the non-binding indication of interest alongside a range of alternatives, including a sale of all or part of the company, a merger or other business combination with another party, or remaining a public company and continuing to execute on management’s long-term business plan.
Moreover, the company has not set a timeline for the decision process.
Following the news of the acquisition proposal, OSG’s stocks went up by 37.14%. On Friday, the closing price of a stock was 2.88%.