NYSE-listed Overseas Shipholding Group (OSG) has received approval to separate its international and domestic businesses into two independent, publicly traded companies Overseas Shipholding Group and International Seaways.
Upon separation, International Seaways will own and operate one of the largest fleets of international crude and product tankers worldwide, according to the company.
OSG will consist of the currently existing U.S. Flag business, which operates a fleet of tankers and ATBs in the blue water Jones Act market.
“Today’s announcement marks another milestone towards the completion of our business separation,” Captain Ian T. Blackley, OSG’s president and CEO, said.
“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,” he added.
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. OSG said that it has the option to abandon the spin-off at any time.
The company filed a registration statement on Form 10 with the US Securities and Exchange Commission in connection with its previously announced plan to separate its international and domestic businesses in July 2016.