OSG says foreign investors reach limit on ownership

OSG says foreign investors reach limit on ownership Tanker company Overseas Shipholding Group Inc. said U.S. ownership of its common stock fell to 77 percent at the close of business April 15, and that no more can be purchased by foreign investors.
   The company said the 77 percent “is the minimum percentage of shares that must be owned by United States citizens in order to preserve the status of OSG as a Jones Act company, in accordance with the company’s charter and bylaws.”
   The U.S. cabotage law requires vessels moving cargo between U.S. ports to be carried on ships that are U.S.-built, owned by U.S. citizens, and crewed by U.S. seafarers.
   OSG has attracted interest from some foreign investors, notably John Fredriksen, the Norwegian shipping magnate who runs the tanker company Frontline and several other companies.
   According to a March 31 filing with the Securities and Exchange Commission, Fredriksen or various companies affiliated with him own 2.99 million shares or about 9.7 percent of OSG stock.
   Earlier in the month Frontline said it was investing in OSG because it saw its shares as “good value,” but would “reserve the right to be in contact with management and other shareholders of OSG regarding alternatives that OSG could employ to enhance shareholder value.”
   OSG is publicly traded on the New York Stock Exchange, and the company said it would advise its transfer agent BNY Mellon Shareholders Services to “strictly enforce” ownership restrictions.
   Last year, in the wake of its purchase of the oil barge company Maritrans, OSG created a new company for its Jones Act fleet called OSG America L.P., under which it retained a 73.5 percent general partnership interest in its U.S.-flag operations and sold another 24.5 percent to limited partners.
   OSG could not be reached for an explanation on whether this arrangement had had any effect on the ability of foreign companies to own OSG securities.