Saltchuk Reconsidering Takeover of Overseas Shipholding Group

Overseas Shipholding Group, Inc. (NYSE: OSG), a major provider of US-flag liquid bulk transportation services in the energy sector, has confirmed the receipt of an unsolicited, non-binding acquisition proposal from Saltchuk Resources, Inc.

The proposal indicates Saltchuk’s interest in buying all outstanding shares of OSG that it doesn’t currently own, at a rate of $6.25 per share in cash. Saltchuk Resources owns about 15 million shares of OSG representing 21% of its outstanding Class A common stock, according to SEC filings.

Saltchuk’s offer comes after OSG’s shares traded at $5.75 as last Friday’s closing. Following the announcement on Monday before market open, shares rose more than 7%, crossing the $6.30 mark.

Saltchuk previously proposed to acquire OSG in July 2021 for $3 per share, but later suspended discussions due to uncertainty over impacts from the pandemic.

OSG’s Board of Directors has pledged to act in the best interests of all shareholders and will carefully consider the new proposal, consulting with financial and legal advisors as necessary. As of now, OSG shareholders have been advised to hold off on taking any action.

OSG cautions its shareholders and other potential traders that its Board has yet to make any decisions regarding its response to Saltchuk’s proposal. The firm also stated that there is no certainty that a definitive proposal will be made or accepted, that any agreement will be executed, or that any transaction will be consummated.

Seattle-based Saltchuk, a privately-owned firm, is an owner of a number of companies across freight transportation, marine services, and energy distribution sectors. Some of its notable brands include TOTE and Foss Maritime.

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