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Nordic American completes Scandic acquisition

NEW YORK (AP) -- International tanker company Nordic American Tankers Ltd. has completed its cash-and-stock acquisition of its management company, Scandic American Shipping Ltd.

Nordic American said Friday that it bought Scandic from a company controlled by its chairman and CEO Herbjørn Hansson. Scandic has served as Nordic American's management company since 2004.

Nordic American announced the acquisition in December. The company said at the time that the Scandic purchase would give it full control of its operations, as Scandic had administrative, commercial and operational responsibility of the company under its management agreement.

The total value of the deal is $25 million, which includes $8 million in cash and $17 million in stock.

Hansson said in a statement that the buyout will have no impact on Nordic American's management.

The transaction included the issuance of about 1.9 million shares. The stock is subject to a one-year lock-up agreement, which means they can't be sold for a year.

Hansson and certain family members own approximately 3.1 million of Nordic American shares, or about 5.6 percent of the Bermuda-based company. Scandic will become a Nordic American subsidiary.

Nordic American Tankers slipped 15 cents to $9.35 in morning trading Friday.