International Seaways to Buy Bruton in $370M Deal, Adding Four VLCCs
INSW has more than doubled off its 52-week low of $43.62.
Summary
International Seaways agreed to acquire Bruton Ltd. for about $370M, adding four VLCCs including newbuildings to a fleet of roughly 70 crude and product vessels. The deal is mostly stock: holders of ~50.5% of Bruton signed up to exchange at 0.0519 INSW shares per Bruton share, with ~3.12M new shares issued (~96% of consideration) and the rest in cash. Shares rose 1.7% pre-market on the news. The company also pre-announced Q3 revenue of $480M-$490M and net income of $340M-$350M, including a $50M gain on the sale of a 2012-built Suezmax. This follows the 8-K filed this morning and the record Q2 beat in August ($5.91 EPS, $5.05 dividend, $935M liquidity), which gives the balance sheet room for the cash portion. Watch for the Q3 earnings release to confirm the preliminary figures and any update on the $200M ATM program.
At the time of this announcement, INSW was trading at $116.00 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $43.62 to $126.27. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.