TORM PLANS TO ACQUIRE NORDEN
TORM, the Copenhagen-based product tanker operator, said its board of directors has approved an offer to acquire Dampkibsselskabet Norden A/S.
TORM intends to initiate an offer to acquire all outstanding common stock of Norden for DKK 360 ($48.06) in cash per share of Norden's common stock. The price marks a 25-percent premium over the closing price of Norden st6ock on June 28. The tender offer is scheduled to expire July 29.
TORM already owns 30 percent of Norden's outstanding common stock.
The transaction brings together the complementary product tanker and dry bulk businesses of the two companies, creating a company with pro forma gross revenues of more than $626 million.
The combined group will operate a fleet of about 160 product tankers, crude oil vessels and dry bulk vessels, 43 of which it would own directly or control through long-term contracts with purchase options. About 20 ships are on order between the two companies and are scheduled for delivery through 2005.
Upon completion of the transaction — expected shortly after the close of the tender offer — TORM intends to integrate Norden's product tankers within its own system. The company plans to combine the dry bulk carrier operations of the two companies and operate them under the Norden brand.
Gudme Raaschou and Jeffries International Ltd. are acting as financial advisors for TORM.