Waiting period ends early in acquisition of OMI by Teekay, TORM

By Lisa Kerner

Charlotte, N.C., May 14 - The Federal Trade Commission and the U.S. Department of Justice have granted early termination of the Hart-Scott-Rodino waiting period in the acquisition of OMI Corp. by Teekay Shipping Corp. and A/S Dampskibsselskabet TORM.

Under an April 17 definitive merger agreement, OMI will be acquired in a $29.25-per-share tender offer that expires at 5 p.m. ET on May 25. The offer is conditioned on acceptance from OMI shareholders representing over 50% of the company's outstanding shares.

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, which is expected in the second quarter of 2007, a company news release stated.

OMI will 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.

Nassau, Bahamas-based Teekay transports seaborne oil and liquefied natural gas, and TORM is a carrier of refined oil products based in Hellerup, Denmark.

OMI, located in Stamford, Conn., owns and operates tankers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.