April 17, 2008
U.S. ownership of OSG stock hits Jones Act minimum
John Fredriksen may be Commodore of the Connecticut Maritime Association. But he's a citizen of Cyprus, not the U.S. So he may run into a problem if he seeks to increase the 9.6 percent interest in Overseas Shipholding Group, Inc. (NYSE: OSG) controlled by Frontline and companies that he indirectly controls (see earlier story.)
Yesterday, OSG announced that U.S. ownership of its common stock at the close of business on April 15, 2008 was 77 percent.
"This is the minimum percentage of shares that must be owned by United States citizens in order to preserve the status of OSG as a Jones Act company, in accordance with the company's charter and bylaws," noted the announcement
"Pursuant to OSG's organizational documents, any share transfer that results in U.S. ownership falling below 77 percent is ineffective and cannot be consummated," said OSG. "Shareholders are required to certify as to their respective citizenship at the time of purchase. OSG has advised BNY Mellon Shareholder Services, its transfer agent, to strictly enforce this important ownership limitation."