08:07 AM EDT, 05/20/2024 (MT Newswires) -- Overseas Shipholding Group ( OSG ) will be acquired by Saltchuk Resources in a deal valued at a total of $950 million, the companies said Monday.

Under the deal, Saltchuk will launch a tender offer to buy all outstanding Overseas Shipholding ( OSG ) shares it does not already own for $8.50 per share in cash, representing a 61% premium to Overseas Shipholding's ( OSG ) 30-day volume-weighted average price, according to the companies. The tender offer will be followed by a second-step merger to acquire any remaining shares at the same price, they added.

The transaction, which values Overseas Shipholding ( OSG ) at an aggregate equity value of around $653 million, has been unanimously approved by the boards of directors of both companies and will be funded through a combination of committed debt financing and cash on hand, the companies said.

Overseas Shipholding ( OSG ) will operate as a standalone unit of Saltchuk after the transaction closes, the companies said.

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