Navios Sells Ship Management Division
The Greek seaborne shipping and logistics company Navios Maritime Holdings sold its ship management division and certain general partnership interests to N Shipmanagement Acquisition Corp. (NSAC), affiliated with company’s chairman and chief executive officer, Angeliki Frangou.
The provider of transport and transshipment of drybulk commodities received aggregate consideration of $20.0 million (including assumption of liabilities) and new five-year service agreements under which NSAC will provide technical and commercial management services at fixed rates and administrative services, reimbursed at allocable cost.
As a result of the transaction, Navios is a holding company owning dry bulk vessels and various investments in entities owning maritime and infrastructure assets.
Meanwhile, NSAC will own all entities providing ship management services and employs all associated people.
Navios will pay a fixed rate of $3,700 per day per vessel, which will cover all technical and commercial management services and operating costs, other than dry-docking and special surveys. This rate will be fixed for a two-year period and will increase thereafter by 3% annually.
Meanwhile, NSAC will provide all administrative services to the Navios and will be reimbursed at allocable cost. NSAC will own the general partner interests in Navios Maritime Containers and Navios Maritime Partners L.P.
Navios simultaneously entered into a secured loan agreement with NSAC whereby it agreed to repay NSAC $125.0 million (subject to post-closing adjustment) over a five-year period.