MRMP Amends 13D; Sends Follow-Up Letter to Navios Maritime Partners LP
September 03 2021 - 7:00AM
Business Wire
MRMP-Managers LLC (“MRMP”), announced today that it has sent a
follow-up letter to the Board of Directors of Navios Maritime
Partners LP (the “Company” or “NMM”) (NYSE: NMM) following the
announcement by the Company of certain transactions.
Ned Sherwood, MRMP’s investment manager, noted that: “although
MRMP has not sold any NMM limited partnership interests, we have
amended our 13D beneficial ownership report following the dilutive
issuance of 6,400,873 limited partnership interests in the
Company’s ongoing ATM securities offering over the past several
months. This new issuance has reduced our holdings from
approximately 5.8% to 4.4% of the Company’s outstanding limited
partnership interests.”
MRMP has attached a copy of its second letter to the Company as
an exhibit to the 13D amendment filed today. This letter details
MRMP’s views regarding the Company’s recent transactions and
reiterates several suggestions set forth in the initial letter,
along with an additional proposal that MRMP believes would
significantly reduce the current discount to net asset value at
which NMM trades: the merger of Angeliki Frangou’s private ship
management company into NMM.
Mr. Sherwood noted that: “In addition to being the CEO of NMM,
Angeliki privately owns a ship management entity that collects
commissions on ship purchases and sales and also earns management
fees for operating the ships. Her incentives are therefore to grow
the fleet by buying more ships. As an LP in NMM, we are wondering
why any rational business person would buy individual ships when
they are immediately valued at approximately 50 percent of cost at
the NMM LP unit price. It would certainly seem that when a private
entity earns income by growing the fleet and a related public
entity trades 100 percent dollars for ships valued at 50 percent of
its market price, a conflict of interest can easily arise.”
Mr. Sherwood went on to state “We would propose that Angeliki
Frangou merge her private entity with NMM at an appropriate
valuation, so that all LP and GP investors’ incentives are better
aligned and we can all row in the same direction. In my opinion,
such action would immediately cause an upward revaluation of NMM
assets and interest price.”
All limited partnership interest holders in NMM are encouraged
to read MRMP’s latest 13D amendment in full. Any questions or
comments may be directed to Mr. Sherwood. Limited partnership
interest holders are also welcome to copy Angeliki Frangou on such
correspondence. To date no one from the Company, including Angeliki
Frangou, has responded to MRMP’s initial letter, and the Company
appears to be ignoring the many value-add suggestions and
recommendations of its LP holders.
Cautionary Statement Regarding Forward-Looking
Statements
This press release and MRMP’s follow-up letter to NMM (attached
as an exhibit to the Schedule 13D/A filed today) contain
forward-looking statements. All statements that are not clearly
historical in nature or that necessarily depend on future events
are forward-looking, and the words “anticipate,” “believe,”
“expect,” “estimate,” “plan,” and similar expressions are generally
intended to identify forward-looking statements. These statements
are based on the current expectations of MRMP and its affiliates
and currently available information. They are not guarantees of
future performance, involve certain risks and uncertainties that
are difficult to predict, and are based upon assumptions as to
future events that may not prove to be accurate. Accordingly,
readers should not place undue reliance on forward looking
information. MRMP and its affiliates do not assume any obligation
to update any forward-looking statements contained in this press
release, except as required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210903005079/en/
Ned L. Sherwood (772) 257-6658 nsherwood@zsfundlp.com
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