Overseas Shipholding Group (OSG) will keep exploring opportunities after Saltchuk Resources declined to move forward with its takeover efforts.
On Thursday, the Jones Act tanker outfit said it would press on with the strategic process announced in July alongside Saltchuk's $3 per share offer to take the New York-listed company private.
"The company’s board of directors has not set a timetable for the strategic process, nor has it made any decisions related to strategic alternatives," OSG said.
"There can be no assurance that the exploration of strategic alternatives will result in a sale of the company, or in any other strategic change or outcome."
Saltchuk disclosed late Tuesday that it was backing out of discussions on its offer, citing uncertainty in the market.
Florida-based OSG had formed the special transaction committee in July, staffing it with independent directors who then retained Evercore as financial advisor and Ropes & Gray as legal advisor.
The move followed Seattle-based Saltchuk's offer, which would have added OSG to its shipping holdings that already include TOTE Maritime and Tropical Shipping.
The offer — valuing OSG at approximately $261m — was long-speculated, as Saltchuk began building up its stake in OSG in March 2020. It was panned by some as a lowball offer despite the premium to its share price.
Valuation service VesselsValue pegs OSG's tanker fleet as worth $417m. It does not include its articulated tug-barge fleet.
OSG has struggled in recent quarters due to the Covid-19 pandemic holding down demand for oil as a result of decreased travel demand.
The company posted back-to-back losses to start 2021 and said some customers were choosing to fix ships from Europe due to abysmally low product tanker rates.
OSG fell $0.53 to $2.18 on Wednesday. In after-hours trading, it rose a nickel to $2.23.
