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US Fortress to buy Stelmar Shipping for $677m

Fortress Investment Group, a US private equity firm with around $10bn under management, has agreed to buy oil tank operator Stelmar Shipping for $677m. The deal values the Greek company at $38.55 per share, an 8.4 per cent premium over its Friday closing stock price of $35.55.

In June this year Stelmar rejected a lower, unsolicited $653.8m all-stock takeover offer from rival OMI Corporation, saying the bid was not in shareholders' best interest. After OMI dropped its hostile takeover bid, Stelmar announced that it was considering the sale of the company among other alternatives, according to a report by Reuters.

Stelmar recently announced that its second quarter profit has more than tripled to $15.8m as revenue rose by 33 per cent to $57.6m. The deal is expected to close in the fourth quarter, subject to shareholder approval.

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