Overseas Shipholding Group, Inc OSG has agreed to acquire 3.78 million common shares from entities managed by Cyrus Capital Partners, L.P. at $4.05 per share, amounting to a total of ~$15.34 million, in a privately negotiated deal.
The purchase is slated for completion today and will be funded using OSG’s existing cash reserves.
OSG’s total cash and investments were $120.8 million as of June 30, 2023.
This purchase is separate from the previously disclosed initiative to buy back OSG common stock worth up to $20 million.
“The price paid in this share purchase equates to an enterprise value of roughly four times expected 2023 adjusted EBITDA, an implied valuation that we believe represents a compelling value. Through both open market purchases and opportunistic off-market transactions such as the one to be concluded today with Cyrus Capital, OSG has repurchased 16.76 million shares over the past fifteen months at an average price of $3.33 per share,” commented Sam Norton, OSG’s President and CEO.
Price Action: OSG shares are trading higher by 1.50% at $4.07 on the last check Monday.
Image and article originally from www.benzinga.com. Read the original article here.