By Lisa Kerner
Charlotte, N.C., April 17 - OMI Corp.'s board of directors unanimously approved the acquisition of the company by Teekay Shipping Corp. and A/S Dampskibsselskabet TORM for $29.25 per share in cash. The board has postponed OMI's 2007 annual meeting to June 28 from May 9 due to the pending transaction.
Under a definitive merger agreement, Teekay and TORM will equally split the total cost of the transaction of approximately $2.2 billion, including assumed net debt, and will divide OMI's assets equally following the transaction's close.
The agreement allows OMI to pay a dividend at a rate of $0.15 per share per quarter, pro rated from April 1 to the closing of the tender offer, up to a maximum total of $0.15 per share, a company news release stated.
Teekay and TORM are required to begin a tender offer to the OMI shareholders by April 27. The offer is conditioned on acceptance from OMI shareholders representing over 50% of the company's outstanding shares.
The transaction is expected to close during the second quarter of 2007.
"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," OMI chairman and chief executive officer Craig H. Stevenson, Jr. said in the release.
Bahamas-based Teekay transports seaborne oil and liquefied natural gas.
TORM is a carrier of refined oil products based in Hellerup, Denmark.
OMI, located in Stamford, Conn., owns and operates tankers.
| Acquirer: | Teekay Shipping Corp. and A/S Dampskibsselskabet TORM
|
| Target: | OMI Corp.
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| Price per share: | $29.25
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| Announcement date: | April 17
|
| Expected closing: | Second quarter of 2007
|
| Stock price for target: | NYSE: OMM: $27.99 on April 16
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