Angeliki Frangou is merging her New York-listed dry bulk and tanker companies, Navios Maritime Partners and Navios Maritime Acquisition Corp.
Describing the move as a “transformative transaction”, Frangou, Navios’s CEO, said: “The combined entity will be the largest US publicly-listed shipping company in terms of vessel count, with 15 vessel types diversified across three segments, servicing more than 10 end markets.”
About one-third of the 140-ship fleet will be in each of the dry bulk, containership and tanker segments with Frangou suggesting the merged company will result in a stronger, more resilient entity, mitigating sector specific cyclicality.
The combined entity will be the largest US publicly-listed shipping company
“This should enable us to capitalise on opportunities throughout the industry and provide even returns to our stakeholders across cycles,” Frangou said.
Navios said the aim was to grow equity market capitalisation and depth in share trading to offer an attractive fundamental investment opportunity to investors seeking exposure to the global economy.
The current value of the combined company’s vessels is estimated at $4.2bn.
Navios Acquisition will merge with a subsidiary of Navios Partners and become a wholly owned subsidiary of Navios Partners. In the merger, Navios Acquisition’s shareholders will receive 0.1275 of a common unit of Navios Partners for each common share of Navios Acquisition.
Based on Navios Partners’ August 24 closing price, the merger consideration reflects a per share value of $3.40, representing premiums to Navios Acquisition shareholders of 65% based on the August 24 closing price and 17.6% based on the most recent 60-day volume weighted average price of Navios Acquisition’s common shares. The merger is expected to close in the fourth quarter of 2021.