Following the market’s closure on 13th December, Navios Midstream common units are no longer publicly traded on the New York Stock Exchange.
Angeliki Frangou, Navios Chairman and CEO, said “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.”
Under the terms of the transaction, Navios Acquisition acquired all of the outstanding common units of Navios Midstream though the issuance of about 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 said that the transaction is expected to:
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Simplify the capital and organisational structure.
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Increase trading liquidity and public float of the Navios Acquisition common stock.
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Enhance access to the capital markets.
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Enhance Navios Acquisition’s credit profile.
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Allow cash retention to support self-funded growth.
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Build scale through a larger asset base that is capable of generating increased profitability.
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Create significant savings in public company costs.
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Reduce cost of capital.
Fried, Frank, Harris, Shriver & Jacobson acted as legal advisor and S Goldman Advisors acted as financial advisor to Navios Acquisition.