Scorpio’s Merger with Navig8 Product Tankers to Close by September
- Business & Finance
The previously announced merger between Marshall Islands-incorporated tanker owner and operator Navig8 Product Tankers Inc. (NPTI) and Scorpio Tankers has moved a step forward as it has secured approval from NPTI’s shareholders on Tuesday, August 29.
“At the meeting, approximately 94.25% of the NPTI shares outstanding were voted, all of which were voted in favor of the merger,” Scorpio said.
“The approval is the result of a vote on the proposal identified in the proxy statement/prospectus, dated August 14, 2017. “
The merger had been unanimously approved by the board of directors of Scorpio as well as by the board of directors of Navig8.
As informed, the deal remains subject to customary closing conditions and is expected to close on or about September 1, 2017.
Under the deal, Scorpio will acquire 24 tankers from Navig8, comprised of 15 LR2s and 12 LR1s with a weighted average age of 0.9 years and a total carrying capacity of approximately 2.6 million DWT.
To remind, in connection with the LR1 vessel acquisitions, Scorpio said it would pay cash consideration of USD 42.2 million, which is net of assumed debt. This cash is expected to remain with Navig8 through closing and will form part of the balance sheet of the combined company, subject to the terms and conditions of the merger agreement.
Once the deal is finalized, Scorpio’s operating fleet will consist of 105 owned or finance leased tankers with a weighted average age of approximately 1.9 years, and 19 time or bareboat chartered-in tankers.
In addition, Scorpio has six newbuilding MR product tankers under construction which are slated for delivery throughout the remainder of 2017 and first quarter of 2018.