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Scorpio Tankers Announces Acquisition of Four LR1 Product Tankers from Navig8 Product Tankers Inc
Scorpio Tankers Inc. announced that it has completed the acquisition of four LR1 tankers from Navig8 Product Tankers Inc. On May 23, 2017, the Company announced that it had entered into an agreement to acquire the LR1 Vessels as part of the definitive agreements to merge with NPTI. To acquire the LR1 Vessels the Company paid $42.2 million in cash consideration and assumed debt of $113.8 million. The cash is expected to be used by NPTI for general corporate purposes, including working capital, and any remaining cash at the closing of the Merger will form part of the balance sheet of the combined company.
The closing of the Merger is subject to the completion of certain customary conditions, including without limitation, the approval of the Merger by holders of a majority of the outstanding shares of common stock of NPTI, the registration statement filed with U.S. Securities and Exchange Commission by Scorpio Tankers to register its shares of common stock to be issued as consideration in the Merger becoming effective under the U.S. Securities Act of 1933, as amended, and the listing of such shares on the New York Stock Exchange. The Merger is expected to close in the third quarter of 2017.