Upon separation, International Seaways will own and operate one of the largest fleets of international crude and product tankers worldwide. It will be headed by Lois Zabrocky.
OSG will consist of the current US Flag business, which operates a fleet of tankers and ATBs in the blue water Jones Act trades.
Both companies will have major market positions, simplified operating structures and strong financial profiles to better enable the management of both companies to capitalise on long-term growth opportunities, OSG said.
“(This) announcement marks another milestone towards the completion of our business separation,” said Capt Ian Blackley, OSG’s president and CEO. “As two independent, industry-leading companies, OSG and International Seaways can drive more focused business strategies and benefit from enhanced operating and financial flexibility. The separation will also present a unique opportunity for investors by creating two distinct and attractive investment profiles, which will allow each company to attract a broader base of shareholders.”
International Seaways has reserved the stock symbol ‘INSW’ on the New York Stock Exchange (NYSE), while OSG will maintain the symbol ‘OSG’ on the NYSE.
The spin-off and timing remains subject to the satisfaction of various conditions, including the effectiveness of the Registration Statement on Form 10. However, OSG may, at any time, decide to abandon the spin-off, the group warned.
Information regarding International Seaways and its business, including details of the spin-off, are included in International Seaways’ registration statement on Form 10, which has been filed with the US Securities and Exchange Commission (SEC).