The Overseas Shipholding Group (NYSE:OSG) surged in trading on Monday after the company announced that it would be acquired by Satchuk Resources for an aggregate equity value of around $653 million and a total transaction value of $950 million. Satchuk Resources is a privately owned family of diversified freight transportation, marine service, and energy distribution companies. OSG operates a fleet of oil tankers and oil tug barges.
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Details of the Deal
According to the terms of the deal, Satchuk will acquire all outstanding shares of OSG for $8.50 per share in cash. This excludes the shares of OSG that Satchuk already owns, as the company has been a significant shareholder of OSG over the past several years. The purchase price represents a 61% premium to OSG’s 30-day volume-weighted average price (VWAP) on January 26, 2024, and a 44% premium to the January 26 closing price of OSG’s shares.
The acquisition is expected to close in the next few months. Following the acquisition, OSG will operate independently under Satchuk, joining its diverse portfolio of transportation, marine, and energy companies.
Is OSG a Good Stock to Buy?
OSG stock has surged by more than 60% year-to-date. However, none of the Wall Street analysts have covered OSG stock over the past three months.
