Dry bulk shipping company Star Bulk Carriers Corp. has entered into a deal to acquire 16 vessels from entities affiliated with Augustea Atlantica SpA and York Capital Management in an all-share transaction.
The 16-strong fleet includes five Newcastlemaxes / Capesize vessels, two Mini Capesize vessels, eight Post Panamax / Kamsarmax vessels and one Ultramax vessel of 4.5 years of average age, built mainly in Japan and Korea.
Under the terms of the acquisition, Star Bulk has agreed to issue approximately 10.5 million common shares to the sellers, equal to approximately 14.1 pct of Star Bulk’s common shares after the closing of the acquisition.
In addition, the Athens-based shipowner will assume debt of USD 310 million.
The consideration to be paid will be determined based on the average vessel valuations by independent vessel appraisers and is subject to adjustments for cash, debt and capex on the closing date, the company explained.
As informed, an entity affiliated with family members of the company’s CEO, Petros Pappas, is a passive minority investor in three of the 16 acquired vessels.
“ Combined with attractive bank financing, we believe that the transaction will be accretive to our shareholders. Star Bulk will continue to be a consolidator in the dry bulk industry,” Petros Pappas, Chief Executive Officer of Star Bulk, commented.
“The vessels will be acquired by a non-recourse fully-owned subsidiary of Star Bulk. Upon completion of the transaction, it is expected that Mr. Raffaele Zagari will join the Board of Directors of Star Bulk. I am confident that Raffaele with his 25 years of shipping experience, will be a valuable asset in the development of our company.”
The acquisition is expected to be consummated in the second quarter of 2018 and remains subject to the execution of definitive finance agreements and customary closing conditions.
The technical management of the 16 vessels will remain with an entity affiliated with Augustea Atlantica, while commercial management will be taken over by Star Bulk.
On a fully delivered basis, Star Bulk will have a fleet of 90 vessels, with an aggregate capacity of 10.2 million dwt.