Tanker owner Navios Acquisition has completed the acquisition of the publicly held units of Navios Midstream in a stock for units exchange.
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 company announced.
“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,”Angeliki Frangou, Chairman and Chief Executive Officer, said.
The deal saw Navios Acquisition issue approximately 3,683,028 newly issued shares in exchange for the publicly held common units of Navios Midstream at an exchange ratio of 0.42 shares.
Navios Acquisition expects the merger to simplify the capital and organizational structure of the group, increase trading liquidity and enhance access to the capital markets together with Navios Acquisition’s credit profile.
The company also hopes the move will help build scale through a larger asset base that is capable of generating increased profitability, reduce cost of capital and create significant savings in public company costs.