Teekay, Torm to acquire OMI

Teekay, Torm to acquire OMI Teekay Shipping Corp. and A/S Dampskibsselskabet TORM will jointly purchase Stamford, Conn.-based tanker operator OMI Corp. for about $2.2 billion, then divvy up the company’s fleet between them.
   The agreement, announced Tuesday, was unanimously approved by OMI’s board of directors.
   Under the agreement, OMI shareholders will receive $29.25 in cash for each share of OMI common stock they hold.
   Teekay and TORM will equally split the total cost of the transaction of about $2.2 billion, including assumed net debt and other transaction costs.
   Under the agreement, Teekay and TORM are required to commence a tender offer to the OMI shareholders on or before April 27. The tender offer will be subject to acceptance from OMI’s shareholders representing more than 50 percent of OMI’s outstanding shares, as well as receipt of standard regulatory approvals. If the tender is successful, the transaction is expected to close during the second quarter.
   Upon closing, Teekay and TORM agreed to divide OMI's assets equally between the companies. Teekay will acquire OMI’s Suezmax operations and eight product tankers, and TORM will acquire the remaining product tankers, 26 in total.
   OMI has 13 Suezmax tankers, seven owns and six chartered-in; and 32 product carriers, 28 owned and four chartered-in. In addition, the company has two product carriers under construction, which will be delivered in 2009.
   “We are delighted with the outcome of this process, which we believe has greatly benefited our stockholders and is a testament to the outstanding job our people have done in a highly competitive market environment,” said Craig H. Stevenson Jr., chairman and chief executive officer of OMI.