ISHP has entered into negotiations to acquire the former shipping subsidiary of U.S. Steel.
biz.yahoo.com
International Shipping Enterprises, Inc. Enters Into Agreement for Exclusive Negotiation Rights for Acquisition of Navios Maritime Holdings Inc.
Thursday February 10, 9:17 am ET
NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- International Shipping Enterprises, Inc. ("ISE") (OTC Bulletin Board: ISHPU.OB - News, ISHP.OB - News, ISHPW.OB - News) announced today that, following a competitive bidding process, it executed an agreement providing for an exclusive period to negotiate definitive documentation to acquire all of the shares of Navios Maritime Holdings Inc. ("Navios"). Lazard is acting as financial advisor to Navios.
There can be no assurance that the parties will successfully negotiate mutually acceptable definitive documentation. In addition, consummation of any such acquisition will be subject to certain conditions, including negotiating definitive documentation and approval of ISE's shareholders.
About Navios Maritime Holdings Inc.
Navios was founded 50 years ago as the shipping subsidiary of United States Steel Corporation. Today, Navios is headquartered in South Norwalk, Connecticut, and maintains offices in Piraeus, Greece, and Montevideo, Uruguay.
Navios is one of the leading global brands in seaborne shipping, specializing in the worldwide carriage, trading, storing and the related logistics of international bulk cargoes. Navios's fleet carries a wide range of cargoes including iron ore, coal, grain, minor bulks (such as cement and fertilizer) and steel products. From time to time over the past two years, Navios has deployed as many as 75 vessels.
Navios's fleet consists of a total of 28 vessels. Six modern Ultra- Handymax vessels are owned by Navios. The 22 long-term time chartered vessels include 15 currently in operation and the remaining seven are scheduled for delivery at various times over the next two years. All of these vessels are either Panamax (70,000-83,000 dwt) or Ultra-Handymax (50,000-55,000 dwt). Navios has options to acquire 13 of the time chartered vessels. The owned vessels have a substantial net asset value and the vessels controlled under the in-charters are at rates well below the market. The purchase options on many vessels in Navios's fleet are also substantially "in the money." The average age of the Navios's fleet is 3.5 years.
Navios has strong commercial relationships with freight customers and trading houses in Asia and significant visibility into worldwide commodity flows through physical shipping operations and terminal operations in Uruguay. As a result, Navios has strong risk management discipline.
Navios also owns and operates a bulk terminal in Uruguay. While a relatively small portion of Navios's overall enterprise, the terminal is a highly attractive, stable business with strong growth prospects.
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