Tanker owner Navios Acquisition has proposed to acquire the publicly held units of Navios Midstream in a stock for units exchange.
Subject to negotiation and execution of a definitive agreement, Navios Acquisition is proposing consideration of 6.292 Navios Acquisition shares for each outstanding publicly held unit of Navios Midstream as part of a transaction that would be structured as a merger of Navios Midstream with Navios Acquisition.
The proposed consideration represents a value of USD 3.838 per common unit of Navios Midstream based on the closing price of Navios Acquisition’s shares as of June 28, 2018.
The company said that the proposed transaction is expected to be a tax-free exchange to Navios Midstream’s unit holders for US federal income tax purposes.
The proposal is subject to the negotiation and execution of a definitive agreement, approval of the board of directors of Navios Acquisition and the necessary approvals under Navios Midstream’s limited partnership agreement.