Navios Maritime Acquisition Stock Skyrockets On Merger With Navios Maritime Partners

Navios Maritime Partners L.P. NMM and Navios Maritime Acquisition Corp NNA have agreed to merge; under the agreement, shareholders of Navios Acquisition will receive 0.1275 of a common unit of Navios Partners for each share.
Based on Navios Partners' August 24 closing price, the merger consideration reflects a per-share value of $3.40, representing a premium of 65% to Navios Acquisition August 24 closing price.
Navios Acquisition will merge with a subsidiary of Navios Partners and become a wholly-owned subsidiary of Navios Partners.
The transaction will create a U.S. publicly-listed shipping company, with over 140 vessels aggregating approximately 15 million deadweight tons operating in three segments through 15 different vessel types and serving more than ten end markets.
The current value of the combined company's vessels is estimated at $4.2 billion, and the combined company will also have an enterprise value of ~$2.25 billion.
The combined fleet is well-positioned to take advantage of the healthy dry cargo markets and any future upturn in the tanker market. It has a $1.6 billion pipeline of contracted revenue coupled with about 47,634 available days in 2022.
The combined company will be led by the existing board of directors of Navios Partners, comprised of seven directors, a majority of whom are independent.
Navios Partners provided Navios Acquisition with a $45.0 million interim working capital facility in connection with the transaction.
The merger is expected to close in 4Q21.
Price Action: NMM shares are trading lower by 6.58% at $23.98, and NNA higher by 38% at $2.90 during the premarket session on Friday.

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