Star Bulk and Eagle to merge, creating industry-leading dry bulk operator

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NASDAQ-listed Star Bulk Carriers Corp. and NYSE-listed Eagle Bulk Shipping Inc. announce that they have entered into a definitive agreement to combine in an all-stock merger on a Net Asset Value to Net Asset Value (NAV) basis with a pro forma market capitalisation of approximately $2.1 billion, creating the world’s largest dry bulk shipping company.

Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, Eagle shareholders will receive 2.6211 shares of Star Bulk common stock for each share of Eagle common stock owned. This represents a total consideration of approximately $52.60 per share, a 17% premium based on Eagle’s closing share price of $44.85 on December 8, 2023.

Upon the close of the transaction, Star Bulk and Eagle shareholders will own approximately 71% and 29% of the combined company on a fully diluted basis, respectively.

Petros Pappas, Chief Executive Officer of Star Bulk, commented: “Bringing together Star Bulk and Eagle will create a global leader in dry bulk shipping with a large, diversified, scrubber-fitted fleet. Together we will benefit from greater scale with 169 owned vessels, generating meaningful synergies and building an even stronger financial profile.

“We will leverage both companies’ technical and commercial fleet management capabilities to optimise performance, deliver on our health, safety, and environmental objectives and maximise earnings potential. With a well-capitalised balance sheet, we aim to continue delivering strong cash returns to shareholders while investing in emission reduction technologies as we continue to pursue growth over the long term. We look forward to working with the talented Eagle team to successfully integrate the two companies.”

Gary Vogel, Eagle Chief Executive Officer, said, “We are very excited to be joining forces with Star Bulk, uniting two best-in-class companies, both commercially and operationally. We are bringing together two highly complementary organisations and are confident that this accretive merger with Star Bulk will unlock significant value for Eagle shareholders, including the opportunity to participate in the long-term upside of the combined company.”

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