WL Ross & Co has agreed to purchase 4.4 million common shares of Navigator Holdings owned by Lehman Brothers Inc (LBI) for USD110 million.
James W Giddens, Trustee for the Securities Investor Protection Act liquidation of LBI, has submitted a motion to the United States Bankruptcy Court of the Southern District of New York for approval of the Purchase Agreement, subject to conditions.
WL Ross had previously acquired 3.5 million Navigator shares. If approved by the Court, the new agreement will bring its total stake in Navigator to over 50%. As part of the transaction, WL Ross agreed with Navigator that a majority of the Navigator Board of Directors will continue to be independent directors, and certain additional transactions relating to Navigator that may be proposed by WL Ross will require their approval.
"We see substantial opportunities in the global transportation industry, particularly rail and marine transport," says Wilbur Ross (pictuired), Jr, Chairman of WL Ross & Co. "Navigator is a leader in the handy-sized shipping segment, which has excellent fundamentals and a positive long-term outlook as global shifts in demand for liquified petroleum gas and other petrochemicals increase opportunities for efficient, flexible marine transportation providers.”
