Navios’ Swap to Deconsolidate

In its 4th quarter earnings announcement, Navios Maritime Holdings disclosed its solution to the reporting issue involving the consolidation of Navios Acquisition Corporation’s results into its financial results due to its 53.7% ownership position. In order to get below the reporting threshold, the company has agreed to exchange approximately 7.7 million shares of Navios Acquisition stock for non-voting preferred shares. These shares will be convertible into shares of common stock of Navios Acquisition, after the second anniversary of the issuance to the extent the company will not own more than a 45% voting interest after any such conversion. We remain curious about the terms and, in particular, whether the shares will pay a dividend. The change is expected to be effective before the end of Q1 2011.

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