Dahlman Rose Comments On DHT Maritime's Deal With Saga Tankers

According to Dahlman Rose, DHT Maritime's (NYSE: DHT) acquisition of Oslo-listed Saga Tankers is transformative for the company, in line with the more aggressive strategy set forth by new management.

Dahlman Rose said that DHT announced that it has agreed to acquire Oslo-listed Saga Tankers in an all-stock transaction in which DHT will issue 0.25 shares in exchange for each Saga share, for a total equity investment of ~$87MM. "Taking into account Saga's outstanding debt of ~$125MM and ~$23MM cash balance, its enterprise value is ~$189MM, which is in line with the $185MM estimated value of the Saga's assets, which consist of 4 VLCCs with an average age of just over 12 years. DHT will issue 21.7MM shares and will control 75% of the pro forma entity."

DHT Maritime closed on Friday at $4.01.