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Saltchuk Takes Anther Run at OSG Takeover

Maritime Activity Reports, Inc.

January 29, 2024

FILE PHOTO: The Greenbrier Companies, Inc.

FILE PHOTO: The Greenbrier Companies, Inc.

Seattle-headquartered Saltchuk Holdings has renewed its bid to take over Overseas Shipholding Group (OSG), a New York-listed marine transportation company based in Tampa, Fla.

Privately-held Saltchuk—OSG’s largest shareholder—had previously offered to acquire OSG in June 2021 but suspended those discussions several months later, citing pandemic-related market uncertainties.

OSG, which operates U.S.-flag tankers and articulated tug barges (ATB), on Monday confirmed its board of directors received an unsolicited non-binding indication of interest from Saltchuk for the acquisition of all of the outstanding shares of the company that Saltchuk does not already own for $6.25 per share in cash.

"OSG’s board of directors will be carefully considering and evaluating, in consultation with its financial and legal advisors, this indication of interest in due course," the company said.

As of January 26, 2024, Saltchuk owns 15,203,554 shares of OSG common stock, representing approximately 21% of the company’s outstanding shares.

"We continue to believe Saltchuk would be an ideal long-term home for [OSG]," Saltchuk said in a letter to the OSG board, signed by Mark Tabbutt, Saltchuk Holdings chairman. "By its nature, shipping has multi-decade investment cycles and shorter-term economic cycles, both of which are better supported by a privately held family business versus being traded in the public markets."

Saltchuk, which already owns a number of marine transportation and services companies such as TOTE, Tropical Shipping, Foss Maritime, Young Brothers and others, said it would fund the proposed transaction through a combination of equity capital from Saltchuk and a refinancing of the company’s debt obligations.

"We believe we can move quickly and execute a definitive purchase and sale agreement within a 30-day confirmatory due diligence period with minimal disruption to the Company’s operations," Saltchuk said.

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