International Seaways to buy Bruton in $370M deal, adding four VLCCs
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International Seaways (INSW) gained 1.7% pre-market Friday after saying it agreed to acquire Bruton Ltd. in a series of transactions that value the smaller tanker company at ~$370M.
The deal combines Bruton's four Very Large Crude Carrier vessels, including newbuildings, with International Seaways' (INSW) existing fleet of ~70 vessels across crude and product segments.
International Seaways (INSW) said it has signed agreements with investors holding ~50.5% of Bruton's shares outstanding to acquire those shares in exchange for 0.0519 International Seaways share for each Bruton share held and will then acquire any Bruton shares still outstanding in a cash-and-stock exchange.
The company said it expects to issue ~3.12M shares in the transactions, representing ~96% of the total consideration, with the remainder paid in cash.
International Seaways (INSW) also reported preliminary Q3 financial results, with shipping revenue and other operating revenues expected at $480M-$490M and net income estimated at $340M-$350M, including a $50M gain from the sale of a 2012-built Suezmax vessel.
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