Navios Maritime Holdings: Acquisition By Navios Maritime Partners Likely The Endgame

Henrik Alex profile picture
Henrik Alex


  • Company's efforts to address its short-term debt issues likely getting support from CEO and Chairman Angeliki Frangou.
  • While remaining a standalone entity has become an option, a merger with former subsidiary Navios Maritime Partners looks like the most likely outcome at this point.
  • Outlining a hypothetical acquisition scenario. Depending on Ms. Frangou's course of action, dilution for common unitholders of Navios Maritime Partners could be substantial.
  • Discussing the overhang from a recent intercompany debt-for-equity exchange transaction. Ongoing stock sales into the open market have caused Navios Maritime Holdings' shares to underperform dry bulk peers by a wide margin since the beginning of the month.
  • Timing will be of the essence for a potential rebound trade in the shares with a potential merger with Navios Maritime Partners in which Ms. Frangou holds all the aces likely still months away.

Cargo Schiff
norinut/iStock via Getty Images

Four weeks ago, I was surprised to see Navios Maritime Partners (NYSE:NMM) or "Navios Partners" bailing out financially distressed sister company Navios Maritime Acquisition (NNA) or "Navios Acquisition".

While the merger consideration will be all

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Henrik Alex profile picture
I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.Despite not being a native speaker, I always try to deliver high quality research at no charge to followers and the entire Seeking Alpha community.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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