Trading ships for shares

摘要

Merger and acquisition (M&A) deals that use shares as currency are showing no signs of abating. Two more went forward in October: the merger of Poseidon Containers and New York Stock Exchange (NYSE)-listed Global Ship Lease (GSL) and the related-party buyout of NYSE-listed Navios Midstream by NYSE-listed Navios Acquisition. The Poseidon transaction is yet another example of private-equity (PE) investors seeking to transform their vessel ownership into publicly traded stock, allowing them more flexibility in exiting their positions. The Navios consolidation exemplifies a different driver: the move by ownership groups with multiple public entities to amalgamate their listings. The Poseidon deal is more akin to a reverse merger, with GSL the surviving entity but Poseidon shareholders obtaining control. George Youroukos-led Poseidon, backed by PE firms Kelso and Maas Capital, has long been on a hunt for public equity. The company sought a NYSE listing in 2014-15 through an initial public offering (IPO), but the share sale never moved forward. In October 2017, it signed a non-binding letter of intent with NASDAQ-listed Euroseas to explore the possibility of merging, which also went nowhere.