Navios Maritime Holdings has unveiled a plan to spend $20m to buy up the New York-listed company’s high-dividend preferred shares.
The move to deploy capital on scooping up shares comes after the Greek outfit recently completed selling off its bulker fleet in a deal with Navios Maritime Partners that allowed it to strengthen its balance sheet.
The transaction will see Navios Holdings, whose remaining assets are a majority stake in Navios South American Logistics and a 10.3% stake in Navios Partners, buy up the shares through a tender offer.
Angeliki Frangou-led Navios Holdings is paying $15.73, minus taxes, for its Series G preferred shares, which have an 8.75% payout.
The company will pay $15.28 for its Series H preferred shares, which carry a 8.63% dividend.
The Series G shares will have priority in the tender offer. But even if all of the nearly 535,000 of those shares are thrown into the sale, it will still leave nearly $11.6m to spend on Series H stock.
The offer will be open until 12 October.
Navios has tapped proxy firm Georgeson to act as information agent on the deal, while Citibank is serving as tender agent.
The tender offer comes days after Piraeus-headquartered Navios Holdings posted a $44.96m profit for the second quarter, up from $24.9m a year earlier.
The company finished the period with $54.9m in cash and equivalents, and $1.46bn in debt and financial leases, although the quarter closed before the company extinguished a major chunk of those liabilities.
