Navios Acquisition completes acquisition of Navios Midstream
Navios Maritime Acquisition Corporation (“Navios Acquisition”) (NYSE:NNA) has completed the acquisition of Navios Maritime Midstream Partners L.P. (“Navios Midstream”). Following the close of the market on December 13, Navios Midstream common units no longer are publicly traded on the New York Stock Exchange, the Corporation said in a press release.
Angeliki Frangou, Chairman and Chief Executive Officer, stated “We are pleased to close this important transaction, which provides Navios Acquisition with a number of benefits, including a simplified corporate structure, larger asset base and enhanced credit profile. We believe that the combined entity will be an attractive investment opportunity for investors.”
Merger Transaction Highlights
Under the terms of the transaction, Navios Acquisition acquired all of the outstanding common units of Navios Midstream though the issuance of approximately 3,683,028 newly issued shares of Navios Acquisition common stock in exchange for the publicly held common units of Navios Midstream at an exchange ratio of 0.42 shares of Navios Acquisition for each Navios Midstream common unit.
Navios Acquisition expects the transaction to:
- Simplify the capital and organizational structure
- Increase trading liquidity and public float of the Navios Acquisition common stock
- Enhance access to the capital markets
- Enhance Navios Acquisition’s credit profile
- Allow cash retention to support self-funded growth
- Build scale through a larger asset base that is capable of generating increased profitability
- Create significant savings in public company costs
- Reduce cost of capital
Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor and S. Goldman Advisors LLC acted as financial advisor to Navios Acquisition.
About Navios Maritime Acquisition Corporation
Navios Acquisition (NYSE:NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals.