Teekay Tankers +14% on formation of new tanker company

|About: Teekay Corporation (TK)|By:, SA News Editor

Teekay Tankers (TNK +13.9%) and Teekay Corp. (TK -0.9%) announce the creation of a new tanker company which will seek to acquire, operate and sell modern second-hand tankers to benefit from an expected recovery in the current cyclical low of the tanker market.

Tanker Investments Ltd. has completed a $250M private equity offering in which TNK and TK each invested $25M for a combined 20% ownership stake in the new company; the balance of the privately placed shares, which will trade on the Norwegian over-the-counter market, have been purchased by a group of institutional investors.

A portion of the net proceeds from the private equity offering will be used to acquire four 2009 and 2010-built Aframax crude oil tankers for a combined $116M; the new company also will acquire four 2009-built Suezmax crude oil tankers from Teekay for a combined $163M.