Star Bulk and Eagle Bulk announced their merger creating a global leader in dry bulk. Petros Pappas’ Star Bulk Carriers, which owns one of the largest fleets of bulk carriers in the world, is absorbing EagleBulk Shipping, one of the world’s largest shipping companies in the medium-sized dry bulk carrier sector.
The two parties recently announced that they have entered into a definitive agreement to merge on a net asset value basis. Their total market capitalization is currently at 2.1 billion dollars.
Based on the terms of the deal, which was unanimously approved by the boards of directors of both companies, Eagle shareholders will receive 2.6211 Star Bulk shares for each Eagle share they own. This represents a total consideration of approximately 52.60 dollars per share, a 17% premium to Eagle’s closing stock price of 44.85 dollars on December 8, 2023. Upon completion of the transaction, StarBulk and Eagle shareholders will own approximately 71% and 29% respectively of the new company.
Star Bulk CEO Petros Pappas commented: “The merger of Star Bulk with Eagle will create a global leader in dry bulk shipping with a large, diversified fleet of scrubbers. With a fleet of 169 owned vessels, we will create significant synergies and an even stronger financial profile. We will leverage the technical and commercial fleet management capabilities of both companies to optimize performance, meet our health, safety and environmental objectives and maximize profitability. With a well-capitalized balance sheet, we aim to continue to deliver strong cash returns to shareholders while investing in emission reduction technologies as we continue to pursue our long-term growth.”
On his part, Gary Vogel, CEO of Eagle, said: “We are very excited to join forces with Star Bulk. Two important companies, both commercially and operationally. We are bringing together two highly complementary organizations and we are confident that the merger with StarBulk will create significant value for Eagle shareholders, including the opportunity to participate in the long-term growth of the new company.”
The deal is expected to be completed in the first quarter of 2024 after being approved by Eagle Bulk’s general meeting of shareholders.
