They're just gonna own the shares, homey. Just like DRYS owns ORIG shares. So you'll get a public valuation for this investment. See below:
"Nordic American Offshore will seek listing on the New York Stock Exchange as soon as possible.
Because of the investment in NAO and as Manager of Nordic American Offshore, the objective for Nordic American Tankers is to pay a higher dividend to NAT shareholders than otherwise would be the case. The new company will have existing contracts in place for several of these vessels and spot charters for the remainder. As with NAT, NAO can be expected to operate on a cash break-even basis that is highly competitive within the industry."
It sounds like they will get the spinoff which will be paid for with diluted shares it sounds like? Is it a stock offering of NAt that will pay for it? they are trying to branch off away from just oil transport. To me this may be a good long term strategy since transport of oil is not profitable. However in the short term dilution usually hurts. Also how will they pay for this AND the .16 cent dividend??
Herb apparently cant take his own #$%$ regarding tankers anymore so he is starting a new supply vessel company. At least he will have something else to talk about. He is a great salesman, and like any salesman when you really cant spin the BS any more then you move on to something else.