Saltchuk Ventures Launch 2nd Takeover Bid for OSG Privatization

Saltchuk has renewed its focus on Overseas Shipholding Group (OSG) after withdrawing its pursuit of the Tampa-based company in September 2021.

The owner of TOTE and Foss, based in Seattle, has put forth a non-binding proposal to purchase all the outstanding shares of the New York-listed operator of Jones Act tankers and oil tug barges. The proposed acquisition price is $6.25 per share in cash.

Saltchuk is the company's largest shareholder, owning roughly 21% of OSG's outstanding shares.

Established in 1982, the privately owned group began discussions with OSG in July 2021 about the possibility of a take-private move. However, they decided to suspend the talks, citing uncertainties related to OSG's business recovery from the COVID-19 pandemic.

“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,” In a letter directed to OSG's board, Saltchuk conveyed this following message.

OSG details its fleet of 21 ships, which includes suezmaxes, conventional and lightering articulated tug barges, shuttles, and conventional MR tankers. Furthermore, non-Jones Act MR tankers are part of the fleet that is actively involved in the US Tanker Security Program.

The company mentioned it will review the proposal, which presents a 5.9% premium over the closing price on January 26, with input from its financial and legal advisors.

“We believe now is the best time to bring our organizations together,” Mark Tabbutt, the chairman of Saltchuk Holdings, communicated with the OSG board, advising stockholders and individuals contemplating stock transactions to be aware that the company has recently received an offer. As of now, no determinations have been finalized.