Navigator Gas is planning to transfer its legal registration from the Marshall Islands to the UK. The company, which owns gas carriers listed on the New York Stock Exchange, intends to present this change to its shareholders next month.
Merger agreement with UK subsidiary
The London-based company announced that it has reached a merger agreement with its wholly-owned subsidiary, Navigator Gas plc, which will be introduced as the new parent company of the group. Under this proposed deal, shareholders of Navigator Holdings will receive one share in Navigator Gas plc for each current share they hold, and the new parent company will continue to maintain its listing on the New York Stock Exchange.
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Voting date and approval conditions
Shareholders will vote on this proposal on November 16. Approval of this change requires a majority of the existing voting shares and its completion is subject to other customary conditions. This restructuring of the company's legal framework will align it with the management and operations based in London.
Navigator has cited the UK’s network of tax treaties, corporate governance framework, and shipping tax regime among the reasons for this change. CEO, Peter Zacho, stated that this change will align the corporate structure more closely with the group's operational base and provide a platform for further investments.
Navigator owns 48 semi-refrigerated and fully refrigerated gas carriers, including 18 vessels capable of carrying ethylene and ethane. The company also holds a 50% stake in an ethylene export terminal in Morgan's Point, Texas.
The value of this deal is estimated at approximately $183 million and is part of the company's efforts to focus on higher gas diversification. Navigator stated that the proposed change of legal registration will not have a significant impact on employees, vessel operations, or customer services.
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