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U.S.-listed Navios Maritime Partners L.P. (NYSE: NMM) and Navios Maritime Containers L.P. (NASDAQ: NMCI) have announced a definitive merger agreement in which Navios Partners will acquire all of the publicly held common shares of Navios Containers in exchange for common shares of Navios Partners.
Navios Maritime Partners owns and operates 55 vessels comprising 42 owned dry cargo vessels and 10 owned containerships. Navios Maritime Containers, meanwhile, is an owner and operator of some 29 containerships.
Navios Maritime Partners announced its offer to acquire all outstanding shares of Navios Maritime Containers in November.
Under the terms of the agreement, public shareholders of Navios Containers will receive 0.39 of a common share of Navios Partners for each outstanding common share of Navios Containers. Based on the December 31, 2020 closing price of Navios Partners, the exchange ratio gives public equity holders a consideration valued at $4.37 per common unit of Navios Containers.
The value represents a premium of 102.2% to Navios Containers’ closing price on November 13, 2020, the last trading day before Navios Partners announced its proposal to acquire all publicly held common units of Navios Containers, and a premium of 6.5% to Navios Containers’ closing price as of December 31, 2020. It’s also a 168.1% premium to the 120-day volume weighted average price of the common units of Navios Containers for the period ending December 31, 2020.
The deal is expected to close in the first half of 2021 and is subject to approval by holders of a majority of the outstanding Navios Containers common units, calculated in accordance with Navios Containers’ partnership agreement, as well as other closing conditions.
In a statement, the company’s said the deal is expected to simplify the capital and organizational structure; create significant savings in public company costs; and reduce cost of capital, among other benefits.
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