Overseas Shipholding Group, Inc.
completed the purchase of Stelmar
Shipping Ltd., a leading international provider of petroleum
product and crude oil transportation services, for a cash purchase
price of $48.00 per share. The acquisition was made pursuant to the
definitive merger agreement between the companies announced on December
13, 2004, and was subject to approval by holders of a majority of
Stelmar's outstanding shares.
At a special meeting of shareholders of Stelmar held earlier today in
New York, NY, shareholders holding approximately 74% of Stelmar's
outstanding shares approved the merger agreement. The merger creates
the second largest publicly traded oil tanker company measured by
number of vessels and the third largest measured by deadweight tons.
The combined company has a fleet of 90 international flag vessels
totaling 12.8 million deadweight tons. The combined international flag
fleet is among the youngest fleets in the industry, and 97% of the
vessels are double-hulled or double-sided. The average ages of OSG's
VLCC, Aframax and Panamax fleets are 5.4 years, 6.8 years and 4.4
years, compared with world fleet averages in these sectors of 8.7
years, 10.2 years and 13.9 years, respectively. OSG's international
flag Handymax fleet has an average age of 9.7 years compared with the
world Handymax fleet average age of 13.8 years. In addition, the
Company has on order four LNG vessels
of 864,800 cbm.
"The acquisition of Stelmar provides OSG a significant presence in
product tanker and Panamax tanker markets and fulfills an important
strategic objective for OSG," said Morten Arntzen, President and Chief
Executive Officer of OSG. "This acquisition is accretive to earnings
beginning today and complements OSG's already leading positions in the
VLCC and Aframax sectors and its recent entry into the LNG sector," Mr.
"The acquisition of Stelmar and the addition to OSG's results of the
revenues from 40 additional vessels, combined with the restoration of
the deferral of taxation on foreign source shipping income pursuant to
the American Jobs Creation Act of 2004 that took effect January 1,
2005, are transforming corporate events for OSG."