Stelmar Shipping directors approve $677 million takeover

Stelmar Shipping directors approve $677 million takeover

Stelmar Shipping Ltd., the Athens-based tanker shipping company listed on the New York Stock Exchange, Monday said its board of directors unanimously approved an agreement for Stelmar to be acquired by affiliates of Fortress Investment Group LLC, an investment firm based in New York, for $677 million in cash.

   Fortress Investment manages some $10 billion in equity capital. Stelmar’s 41-vessel fleet consists of 24 Handymax, 13 Panamax and four Aframax tankers.

   The price translates into $38.55 per share, or 8 percent more than the closing price of Stelmar’s common stock on Sept. 17. The agreed price is also 55 percent higher than the share price on May 14, the last trading day prior to the announcement by OMI Corp. of a takeover bid for the Greek shipping company. In June, Stelmar rejected the OMI bid.

   “The agreement represents the conclusion of Stelmar’s review, announced on June 28, 2004, of strategic alternatives for further enhancing shareholder value,” the company said.

   The transaction is expected to close during the fourth quarter and is subject to approval by Stelmar shareholders and other conditions. Morgan Stanley and Jefferies & Co. advised Stelmar on the transaction.