OMI Corp., the second-largest U.S. oil-tanker owner, has agreed to be purchased by Teekay Shipping Corp. and Denmark's D/S Torm A/S for $2.2 billion including debt. OMI shareholders will receive $29.25 in cash per share held, representing a 5.4% premium to yesterday's close. The cost of the acquisition will be divided equally between the purchasers. OMI offers Teekay and D/S Torm a fleet of Suezmax crude oil tankers and other vessels used to transport refined oil products like gasoline. The price of a new Suezmax has risen 75% since 2003 and a used one over 90%. According to Dahlman Rose & Co. analyst Omar Nokta, OMI's fleet is worth approximately $2 billion. Teekay will acquire OMI's nine Suezmax tankers to add to the 15 already in its fleet, as well as eight refined oil product tankers. Torm will acquire the company's remaining 26 oil product tankers. OMI's tankers are among the youngest in the world, with an average age of 3.3 years.
Sources: Press release, Bloomberg, Reuters, Forbes
Commentary: OMI Corp. Might Be for Sale - WSJ • Sinking Ships? Tanker Stocks' Difficult Week and Why They Should Soon Rebound • Everything You Wanted To Know About Shipping And Were Afraid To Ask
Stocks/ETFs to watch: OMI Corp. (OMM), Teekay Shipping Corp. (TK), A/S Dampskibsselskabet TORM (TRMD). Competitors: General Maritime Corp. (GMR), Overseas Shipholding Group Inc. (OSG)
Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.