|This Slide: #99 of 100|
Slide #99. Nordic American Tankers Ltd. — Scandic American Shipping Ltd.
Nordic American Tankers Ltd. (NYSE:NAT)
Scandic American Shipping Ltd.
Following an agreement between Scandic and NAT, NAT today announced that it will acquire 100% of the shares of Scandic, its management company since 2004. When Scandic began actively managing NAT eight years ago, NAT owned three vessels. Today NAT owns 20 vessels. Scandic is currently owned by a company controlled by Herbjorn Hansson, NAT's Chairman and CEO, and his closest family. Under its management agreement with NAT, Scandic has administrative, commercial and operational responsibility for NAT and is required to manage NAT's day-to-day business, subject to the objectives, decisions and policies of the NAT Board of Directors. By acquiring Scandic, NAT will gain full control of all aspects of its operations. The purchase price is $25 million, two-thirds of which will be paid in shares ($17m) and one-third in cash ($8m). The share component of the sale will be subject to a one-year lock-up, while the cash component will be used primarily by the seller to pay tax associated with this transaction. The part that is payable in shares has been set at $8.90 per share which is above the closing price on the NYSE on Friday, December 14, 2012 of $8.52 per share. Scandic is now expected to become a wholly owned subsidiary of NAT.
Nordic American Tankers is an international tanker company focused on acquiring and chartering three double-hull Suezmax tankers.
NAT SEC Filing Email Alerts Service
Open the NAT Page at The Online Investor »
Buy (3.00 out of 4)
(ranked lower than approx. 62% of all stocks covered)
Based on Zacks ABR data;
powered by Xignite