Shareholders Approve Scorpio- Navig8 Merger
Scorpio Tankers said shareholders of Navig8 Product Tankers Inc. (NPTI) approved the previously announced merger of Scorpio and NPTI at shareholders meeting held Tuesday.
At the meeting, approximately 94.25 percent of the NPTI shares outstanding were voted, all of which were in favor of the merger.
The merger remains subject to customary closing conditions and is expected to close on or about September 1, 2017.
Three months ago, Scorpio Tankers announced that it had reached a deal to acquire 27 recently built LR tankers by merging with Navig8 Product Tankers.
The deal makes Scorpio the largest product tanker firm on a U.S. securites exchange, and Scorpio said it expects the increased scale of its operations to reduce costs and increase vessel utilization.
Scorpio currently owns 82 product tankers (23 LR2, four LR1 tankers, 41 MR tankers and 14 Handymax tankers) with an average age of 2.5 years and time or bareboat charters-in 20 product tankers (two LR2, nine MR and nine Handymax tankers).
Scorpio also has contracted for four newbuilding MR product tankers expected to be delivered throug the remainder of 2017 and the first quarter of 2018.
NPTI is a Marshall Islands corporation operating LR1 and LR2 tankers with carrying capacities between 74,000 dwt and 113,000 dwt. The company currently has a fleet of 23 eco-design product tankers (15 LR2 and eight LR1 tankers) financed through bank debt, sale leaseback transactions and cash on hand.
