After it terminated an earlier agreement to sell its shares to Navios Maritime Holdings, FSL Trust Management said that the move was made as the proposed transaction “would not be feasible.”
The company, a trustee-manager of Singapore-based First Ship Lease Trust, signed a term sheet with Navios in April 2017 to sell 154.4 million shares in FSL Trust, representing around 24.2% of the total number of issued units in FSL Trust, for a total of USD 20 million.
FSL Trust said that it was of the view that the proposed transaction would not be feasible and sought to negotiate terms with Navios.
As no definitive structure was agreed to, nor definitive documentation executed, prior to the end of the exclusivity period granted under the term sheet, it was automatically terminated in accordance with the terms thereof.
The company informed that the termination has no material financial impact on the group as the term sheet was non-binding and no definitive and binding agreement has been entered into between the parties in relation to the transaction.
FSL said that it is and will be considering all options available, including any further proposals from Navios, in order to achieve refinancing and ensure “the long-term stability of FSL Trust amid the volatility and reduction in vessel values.”