Star Bulk Carriers (NASDAQ:SBLK) on Monday mentioned it is going to merge with Eagle Bulk (NYSE:EGLE) in an all-stock deal, making a dry bulk transport entity with a professional forma market capitalization of about $2.1 billion.
The brand new firm will function as Star Bulk Carriers Corp. and shall be headquartered in Athens, Greece, whereas sustaining places of work in Stamford, Connecticut; Singapore; Copenhagen; and Limassol.
Below merger phrases, Eagle shareholders will obtain 2.6211 shares of Star Bulk frequent inventory for every share of Eagle frequent inventory owned.
The merged entity can have a complete liquidity of practically $420 million as of September 30, 2023, and is anticipated to generate no less than $50 million in annual value and income synergies inside 12–18 months following the shut.
Upon closing, Star Bulk and Eagle shareholders will personal about 71% and 29% of the mixed firm on a completely diluted foundation, respectively, with its complete fleet consisting of 169 owned vessels.
Petros Pappas will function CEO of the mixed firm, and Spyros Capralos, present Chairman of Star Bulk, will function chairman. One member of the Eagle board will be part of the Star Bulk board at closing.
The transaction is anticipated to shut within the first half of 2024.
Press Launch.
EGLE shares rose +5.4% at $48.69 whereas SBLK shares had been down -4.8% at $19 after hours.