Tanker Investments (TIL) has confirmed its merger with Teekay Tankers, creating the ‘world’s largest’ publicly-traded mid-sized conventional tanker company with combined total assets of $2.4 billion, operating 62 ships.
“With a larger combined balance sheet and operating fleet with fullyintegrated operations, we believe Teekay Tankers will be the leading tanker company in the mid-size sector positioned to take advantage of future opportunities.” Mr. William Hung, Tanker Investments’ Chief Executive Officer commented.
Tanker Investments has agreed to an all-stock merger with Teekay Tankers at an exchange ratio of 3.30 Teekay Tankers Class A common shares for each TIL common share (other than shares already owned by Teekay Tankers). Teekay Tankers currently owns an 11.3% ownership interest in Tanker Investments, and following the consummation of the merger, Tanker Investments will become a whollyowned subsidiary of Teekay Tankers.
Upon completion of the merger, Tanker Investments’ shareholders (other than Teekay Tankers and Teekay Corporation) will own approximately 30% of the combined entity, consisting of 62 conventional tankers, including three in-chartered vessels (30 Suezmax tankers, 22 Aframax tankers, 9 LR2 Product tankers and one 50 percent-owned VLCC tanker)
As part of the merger, the Special Committee will have the right to propose a Board observer to the Board of Directors of Teekay Tankers, after consulting with the largest independent shareholders of Tanker Investments and subject to the approval of Teekay Tankers. The duration of this observer position will run through 2018, or earlier depending on the trading price of Teekay Tankers’ common shares.
Since Teekay Tankers already provides the technical and commercial management of the TIL vessels, the Company expects a seamless and cost-efficient integration of the two fleets.
