Navios Maritime Holdings has sold its ship management division to N Shipmanagement Acquisition Corp. (NSAC), a company affiliated with chairman and CEO Angeliki Frangou, for $20m.

As part of the transaction, Navios Maritime Holdings has signed a five-year service agreement with NSAC for the provision of technical and commercial management services. The services are at a fixed rate of $3,700 per day per vessel, and cover all operating costs with the exception of dry-docking and special surveys. The price is fixed for two years, and will then increase at a rate of 3% annually.

NSAC will also provide all administrative services to Navios Maritime Holdings and will be reimbursed at allocable cost.

Navios Maritime Holdings also entered into a secured loan agreement with NSAC, and has agreed to repay $125m over a five-year period. The amount reflects the liabilities of the ship management business.