Key Summary: On July 22, 2021, Sherwood disclosed a 5.8% stake, expressing concerns about the company's management and decisions by CEO Angeliki Frangou, including $200 million in ATM offerings and $185 million ship purchases from related parties. On September 3, 2021, Sherwood and MRMP suggested merging Frangou's private ship management company with NMM to align incentives. On November 28, 2023, Sherwood (5.4%) criticized NMM's performance, highlighting conflicts of interest, undervaluation, and called for removing anti-takeover provisions, merging the ship management entity, exploring segment offers, and implementing a unit buyback plan.
Market Cap: $747 million | Navios Maritime Partners L.P. owns and operates dry cargo vessels in Asia, Europe, North America, and Australia.
On July 22, 2021, Sherwood disclosed a 5.8% active stake and delivered a letter to the company and its CEO Angeliki Frangou detailing concerns regarding the management and direction of the company, and accusing her of “imprudent and illogical” decisions that have hurt shareholder value. In Sherwood’s letter, he called into question $200 million worth of recent at the money (ATM) offerings by the company and purchases of approximately $185 million of ships at market values from “largely related parties.” Sherwood and MRMP also suggested that Frangou, (Chairman and CEO of the company)and management implemented a range of policies, such as share buybacks, selling assets and paying down debt, and/or increasing dividends to shareholders
On September 3, 2021, Sherwood, MRMP’s investment manager, (4.4%) sent a follow-up letter to the Board. This letter detailed 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 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".
On November 28, 2023, Sherwood (5.4%) expressed his concerns about NMM's poor performance, including a 23.3% decline in unit price despite reported earnings. He questioned Ms. Frangou's satisfaction with the results, suggesting potential conflicts of interest due to fees from her Ship Management Company. Sherwood also highlighted a significant undervaluation compared to estimated NAV and called for actions such as removing anti-takeover provisions, merging the ship management entity, exploring offers for NMM's segments, and implementing a unit buyback plan to enhance unitholder value. He encouraged fellow unitholders to withhold votes for a Class III director and urged them to contact NMM's Board of Directors to support these measures. Source
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