Navios Merges Into Largest U.S. Listed Shipping Company
The Monaco-based Navios Maritime Partners (NMM) is acquiring the debt-laden Navios Maritime Acquisition Company (NNA) to create a massive containership, bulker, and tankship company with over 140 ships. This will make it the largest US publicly listed company by vessel count.
“The combined entity will be the largest U.S. publicly-listed shipping company in terms of vessel count, with 15 vessel types diversified across three segments, servicing more than 10 end markets,” said Angeliki Frangou, Chairwoman and CEO of Navios Maritime Partners. “About one-third of our fleet will be in each of the dry bulk, containership, and tanker segment. This will result in a stronger, more resilient entity, mitigating sector-specific cyclicality.”
Tradewinds reports the combined company will feature 55 bulkers, 43 containerships, and 45 tankers once all newbuildings have been delivered for a total fleet worth an estimated $4.2bn and a combined market capitalization of some $822m based on current share prices of both companies.
This is the second major merger for the company this year. In January Frangou announced that Navios Maritime Partners would merge with Navios Maritime Containers and in July the company announced the purchase of 2 containerships and a 6 ship newbuild contract.
The combination of Navios Partners and Navios Acquisition will see shareholders of Navios Acquisition receiving 0.1275 of a common unit of Navios Partners for each outstanding common share of Navios Acquisition. In connection with the Transaction, Navios Partners provided Navios Acquisition with a $45.0 million interim working capital facility.
The Transaction was unanimously approved by both the special committee of the Board of Directors of Navios Acquisition, and Navios Acquisition’s full board of directors. The Transaction was also unanimously approved by Navios Partners’ board of directors
The merger is expected to close in the fourth quarter of 2021.
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