Changes are on the horizon in the dry bulk business. Greece’s Star Bulk Carriers and US-based Eagle Bulk Shipping have signed an agreement to merge into the largest shipping company specializing in dry bulk.
The operation, approved unanimously by the boards of directors of both companies, is an all-share merger, giving the newly-formed company a pro-forma market capitalization of $2.1 billion.
The agreement is expected to be formalized by June 2024. It foresees Eagle shareholders receiving 2.6211 ordinary shares of Star Bulk for each of their own shares, amounting to approximately $52.60 per share.
Star Bulk and Eagle shareholders are expected to own respectively approximately 71% and 29% of the newco, which will operate a combined fleet of 169 vessels
The company will be led by Petros Pappas, CEO of Star Bulk, who will be assisted by senior executives from Eagle. Star Bulk’s Spyros Capralos will be chairman and a current member of the Eagle Board will be part of the new board of administration.
Translation by Giles Foster
