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Nordic American Tankers to buy Scandic via USD25m cash-and-stock deal.

M2 EQUITYBITES-December 17, 2012-Nordic American Tankers to buy Scandic via USD25m cash-and-stock deal(C)2012 M2 COMMUNICATIONS http://www.m2.com

17 December 2012 - Bermuda-based tanker company Nordic American Tankers Ltd (NYSE:NAT), or NAT, said today it had sealed a definitive deal to purchase its US-based management company Scandic American Shipping Ltd via a USD25m (EUR19m) cash-and-stock deal.

The vendor is a company controlled by NAT's chairman and CEO, Herbjorn Hansson, and his closest family. Scandic has provided administrative, commercial and operational services to NAT since 2004.

The purchase price includes a cash consideration of USD8m, with the remainder to be paid in shares at a price of USD8.90 per unit, which is above NAT's closing price of USD8.52 on the NYSE on Friday. The stock portion is subject to a one-year lock-up, NAT said.

The deal will give the buyer a complete operational control of all aspects of its operations and allow it to abolish a dilutive provision under which Scandic has to preserve a 2% ownership of NAT's stock. The NAT shares currently owned by Scandic will remain with the vendor.

Upon completion of the deal, which is seen to occur in January 2013, Scandic will become a wholly owned subsidiary of NAT. Morgan Stanley & Co LLC and Seward & Kissel LLP served as advisors to the buyer.

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Publication:M2 EquityBites (EQB)
Date:Dec 17, 2012
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