Teekay, Torm to split OMI

OMI Corporation has confirmed a definitive agreement to be jointly acquired by Teekay Shipping and Torm for $2.2Bn, pending shareholder approval. Speculation on the potential sale of OMI’s 3.5M dwt fleet has swirled since mid-March, when the company announced it was exploring strategic options and had retained Perella Weinberg Partners and Fearnley Fonds as financial advisors. According to an announcement Tuesday, the OMI board unanimously agreed to an offer whereby shareholders would receive $29.25/share in cash and Teekay and Torm would split the cost of the transaction equally. As part of the deal expected to close in 2Q07, Teekay would acquire OMI’s Suezmax operations (seven owned, six chartered-in) plus eight product tankers, while Torm would acquire OMI’s remaining 26 product tankers. Teekay and Torm must commence a tender offer on or before 27 April, and that offer must be approved by holders representing over 50% of OMI’s outstanding shares. Earlier this month, speculation on a potential Torm takeover bid for OMI arose following Torm’s consideration of a possible private placement to sell its 32.7% stake in DS Norden.