May 23, 2017 / 8:49 PM / 2 years ago

BRIEF-Scorpio Tankers to merge with Navig8 Product Tankers

May 23 (Reuters) - Scorpio Tankers Inc

* Scorpio tankers inc. Announces merger agreement with navig8 product tankers inc. And the launch of a concurrent public offering of common shares

* Scorpio tankers inc - in connection with lr1 vessel acquisitions, scorpio will pay cash consideration of $42.2 million

* Scorpio tankers inc - launch of an underwritten public offering of up to $200.0 million of its shares of common stock

* Scorpio tankers inc - net proceeds of offering are expected to be used to provide cash to further strengthen co’s balance sheet and enhance liquidity

* Scorpio tankers inc - cash consideration in connection with lr1 vessel acquisitions is net of assumed debt

* Scorpio tankers inc - cash consideration expected to remain with navig8 through closing and will form part of balance sheet of combined company

* Scorpio tankers inc - proceeds of offering are also expected to be to fund purchase price of lr1 vessel acquisitions

* Scorpio tankers inc - merger has been unanimously approved by board of directors of scorpio

* Scorpio tankers inc - consideration for deal reflects a total equity value for navig8 of approximately $228.8 million

* Scorpio tankers inc - consideration for deal reflects total enterprise value of approximately $1.1 billion, including assumption of debt

* Scorpio tankers inc - through merger, scorpio is acquiring an operating fleet of 27 eco-design product tankers

* Scorpio tankers - following completion of deal, on a fully delivered basis, scorpio’s operating fleet will consist of 105 owned or finance leased tankers

* Scorpio tankers inc - certain navig8 shareholders have agreed to vote their navig8 shares in favor of merger

* Scorpio tankers inc - shareholders who have agreed to vote in favor of deal constitute a majority of navig8’s outstanding common shares

* Scorpio tankers inc - scorpio will appoint one additional independent director that will be selected by scorpio’s board of directors

* Scorpio tankers inc - scorpio has also entered into an agreement to sell two mr product tankers, which is expected to close in june 2017 Source text for Eikon: Further company coverage:

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