Overseas Shipholding Group Inc. (OSG) has announced the filing of a registration statement on Form 10 with the US Securities and Exchange Commission (SEC), in connection with the company’s previously announced plan to separate its international and domestic businesses.
OSG said that any separation is likely to be achieved through a spin-off of OSG International Inc. (OIN) in 2H16 to create two standalone publicly traded companies. Each company would be better able to focus on its own business, creating the potential to enhance the long-term performance and shareholder value of each company.
Captain Ian T. Blackley, OSG’s President and CEO, said: “The filing of the Form 10 is an important step in the execution of our plan to create two industry-leading independent public companies […] Separating our international and domestic businesses will allow each company to more effectively pursue their distinct operating priorities and strategies and better enable management of both companies to capitalise on opportunities for long-term growth and profitability. Both businesses will continue to provide safe, reliable, high-quality transportation services to our customers in each sector.”
OIN currently owns and operates one of the largest fleets of international crude and product tankers worldwide. It has ownership interests in four LNG carriers and two floating storage and offloading service vessels.
After the spin-off, which remains subject to various conditions, OSG will consist of the currently existing US Flag business.
Edited from press release by Callum O'Reilly
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