Teekay, TORM acquire majority ownership of OMI

By Lisa Kerner

Charlotte, N.C., May 31 - Omaha, Inc., a jointly owned subsidiary of Teekay Corp. and A/S Dampskibsselskabet TORM, acquired 49.8 million shares in the tender offer for OMI Corp. and now owns about 83.5% of all outstanding shares of OMI.

Omaha's subsequent offering period for all remaining OMI shares is slated to end at 5 p.m. ET on June 5. OMI shares will be accepted for payment at the same offer price paid during the initial offer period of $29.25 per share in cash, according to a company news release.

After June 5, Omaha will acquire all of the remaining outstanding shares of OMI through a merger of OMI with and into Omaha. Omaha will be the surviving corporation and will be known as OMI Corp.

In connection with the tender offer, OMI paid the previously announced special cash dividend of $0.10 per share to all holders of record as of May 24.

On April 17, OMI's board unanimously approved the acquisition of the company by Teekay and TORM for $29.25 per share in cash. Under a definitive merger agreement, Teekay and TORM will equally split the total cost of the transaction of about $2.2 billion, including assumed net debt, and will divide OMI's assets equally following the transaction's close.

Nassau, 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.

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