Tanker firm International Seaways (INSW) and energy shipping company Diamond S Shipping have decided to merge in a stock-for-stock transaction.
This comes after the companies’ boards of directors unanimously sanctioned a definitive merger agreement.
The companies stated that the merger will result in the formation of the second-largest US-listed tanker company by ship count and third-largest by deadweight ton (dwt).
The combined company will have an enterprise value of nearly $2bn and own roughly 100 vessels on a pro forma basis.
After the merger, INSW shareholders will own approximately 55.75% and Diamond S shareholders nearly 44.25% of the combined company.
The full stock consideration in the deal has been valued at roughly $416m on the basis of the closing prices of INSW’s shares on 30 March…
