Atlas Corporation, the parent company of Seaspan, has accepted the buyout offer by Poseidon Acquisition Corp. and the consortium will acquire the New York-listed company for around US$10.9 billion.
The consortium, formed by certain affiliates of Fairfax Financial Holdings Limited, certain affiliates of the Washington Family, David Sokol, chairman of the board of Atlas, Ocean Network Express (ONE) and certain of their respective affiliates, has come to an agreement with Atlas, according to which Poseidon Acquisition Corp. will acquire all outstanding common shares of Atlas not owned by Fairfax, Washington and Sokol for US$15.50 per share in cash.
Fairfax, Washington and Sokol currently own approximately 68% of the outstanding common shares.
Atlas will continue payment of all ordinary course quarterly dividends regardless of the timing of any closing, according to a statement.
“Atlas has continued to develop its long-term strategic partnerships and differentiated business model to position the company for sustainable and quality growth. We believe this transaction with Poseidon is an exciting culmination of those efforts for our shareholders,” said Bing Chen, president and CEO of Atlas Corp.
The transaction is expected to close in the first half of 2023, subject to approval by holders of a majority of Atlas common shares not owned by Poseidon and its affiliates and certain closing conditions, including receipt of regulatory approvals and third-party consents.
Upon the closing of the transaction, Atlas common shares will cease trading on the New York Stock Exchange (NYSE). Atlas preferred shares will continue trading on the NYSE under current terms.
Following the completion of the transaction, Washington and Fairfax will own a majority of the equity of Atlas, while Chen will continue to serve as president and CEO of Atlas and will contribute his equity in Atlas to become an owner of the company along with Poseidon.
