OSG Acquires Stelmar Shipping

Thursday, January 20, 2005
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. Arntzen continued.

"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."

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

INTERSCHALT Expands Africa, Asia Service Networks

INTERSCHALT maritime systems AG, the provider of maritime software, services and supplier of Voyage Data Recorders (VDR 4G[e] and s-VDR) has expanded its network

Access to Brazil's Itajai Port to Open as Truck Protest Ends

Protesters have agreed to open access to Brazil's main poultry exporting port of Itajai in Santa Catarina state, the port said on Wednesday, ending a lingering

E-marine Begins Fleet Expansion

E-marine, a provider of submarine cable installation and repair solutions in the Middle East and Sub-Continent region, has unveiled plans to expand its fleet of cable ships in 2015,

Finance

Ten Migrants Die in Mediterranean, a Thousand Rescued

At least 10 North African migrants died when their rubber boat overturned in the southern Mediterranean while almost a thousand more from a total of seven vessels

Access to Brazil's Itajai Port to Open as Truck Protest Ends

Protesters have agreed to open access to Brazil's main poultry exporting port of Itajai in Santa Catarina state, the port said on Wednesday, ending a lingering

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

 
 
Maritime Careers / Shipboard Positions Maritime Security Pipelines Pod Propulsion Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1805 sec (6 req/sec)