Saltchuk has revived its interest in Overseas Shipholding Group (OSG) after dropping its pursuit of the Tampa-based company in September 2021.
The Seattle-based owner of TOTE and Foss has returned to the New York-listed operator of Jones Act tankers and oil tug barges with a non-binding offer to buy all its outstanding shares for $6.25 per share in cash.
Saltchuk owns about 21% of OSG’s outstanding shares and is the company’s largest shareholder.
The privately owned group formed in 1982 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.
“During this period, new Covid-19 variants emerged, uncertainty about the timing of recovery, for both our nation and OSG, increased, and we felt the timing was not right,” Saltchuk said in a letter to OSG’s board.
OSG lists 21 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.
The company said it would evaluate the offer, which represents a premium of 5.9% to the closing price on January 26, in consultation with its financial and legal advisors.
“We believe now is the best time to bring our organizations together,” wrote Mark Tabbutt, chairman of Saltchuk Holdings, to OSG board, who meanwhile cautioned stockholders and others considering trading in its stock that it has just received the offer and no decisions have yet been made.
