Star Bulk Carriers to Buy Oceanbulk

Posted by Eric Haun
Monday, June 16, 2014
52,434 dwt supramax bulk carrier Star Delta (Photo courtesy of Star Bulk Carriers)

Star Bulk Carriers Corp said it would buy Oceanbulk Shipping LLC and Oceanbulk Carriers LLC in an all-stock deal to create the largest U.S.-listed dry bulk shipper.

Star Bulk is issuing 54.104 million new shares to buy the Oceanbulk companies, valuing the deal at about $653 million based on Star Bulk's Friday close of $12.07.

The deal comes as the global dry bulk shipping industry is poised to recover from a severe downturn, helped by steadying demand for iron ore and coal from China and India and the scrapping of older vessels.

After closing, the Athens, Greece-based company will have a market value of about $1 billion and a fleet of 69 vessels, Star Bulk said on Monday.

The company's shares were up 3 percent at $12.47 in early trading on the Nasdaq on Monday.

The Baltic Exchange's main index, which tracks rates for ships carrying dry bulk commodities such as coal, iron ore and grain, has gained nearly 4 percent in the past year after a five-year slide due to a rapid expansion of the global fleet.

The index, which touched a life-high of 11,793 in 2008, stood at about 880 on Monday.

Star Bulk's new shares will go to affiliates of Oaktree Capital Management and Star Bulk's non-executive chairman, Petros Pappas, and some of his immediate family members.

Oaktree will own 61.3 percent of Star Bulk, while Pappas and his family will own 12.5 percent.

Star Bulk will get 15 vessels and contracts for the construction of 26 more from Oceanbulk.

There were reports earlier this year that Oceanbulk was looking to go public.

Stifel Nicolaus & Co analyst Benjamin Nolan said he did not think the deal said much about the state of the dry bulk market, noting that Oaktree and Pappas were on both sides of the deal.

Star Bulk said it plans to pursue additional acquisitions after the completion of the deal.

Pappas will become chief executive of the combined company, while Star Bulk's current CEO, Spyros Capralos, will become non-executive chairman of the board.

Evercore was the financial adviser to a committee of Star Bulk's directors, while Wachtell Lipton Rosen & Katz was the legal counsel.

Paul, Weiss, Rifkind, Wharton & Garrison LLP was Oceanbulk's legal counsel. Seward & Kissel LLP was Star Bulk's legal counsel.

(Reporting by Swetha Gopinath and Kanika Sikka in Bangalore; Editing by Ted Kerr and Saumyadeb Chakrabarty)


People & Company News

MN100: Guido Perla & Associates, Inc.

The Company: With offices in the US, Brazil, Chile, China and Germany, GPA developed into an independent, full-service naval architecture and marine engineering

Grand Bahama Shipyard Expands Sales Team

Grand Bahama Shipyard Limited (GBSL) has added three regional sales directors to its Marketing and Sales Division, with posts in the Americas, Europe and Asia/Middle East.

MN100: Kohler Marine

The Company: Kohler Marine generators are produced in the United States and distributed globally. Kohler Marine sales as well as aftermarket sales and service activities are globally organized.

Finance

KfW IPEX-Bank Boosts its Presence at SMM

In an interview the departing head of the KfW IPEX-Bank Maritime Industries department, Dr. Carsten Wiebers offers insight into the facets of international ship

Hyundai Merchant Marine to buy Hanjin's 'Good' Assets

South Korea's financial regulator said on Wednesday that Hyundai Merchant Marine Co Ltd will seek to acquire healthy assets of troubled shipper Hanjin Shipping Co Ltd.

APM Terminals to invest $70 mln in Port Elizabeth Terminal

The Port of New York and New Jersey is the largest port on the US East Coast and third largest in the United States with 6.37 million TEU handled in 2015.  In 2014,

News

VLCC Delivered to Gener8 Maritime

Gener8 Maritime, Inc., a U.S.-based provider of international seaborne crude oil transportation services, announced that it has taken delivery of the ECO VLCC the Gener8 Macedon on August 30,

Grand Bahama Shipyard Expands Sales Team

Grand Bahama Shipyard Limited (GBSL) has added three regional sales directors to its Marketing and Sales Division, with posts in the Americas, Europe and Asia/Middle East.

NYC Ferry Strikes a Group of Kayakers

A New York Waterways ferry struck a group of kayakers on the Hudson River Tuesday afternoon, according to the U.S. Coast Guard.   Five of the 11 kayakers were

Mergers & Acquisitions

Hyundai Merchant Marine to buy Hanjin's 'Good' Assets

South Korea's financial regulator said on Wednesday that Hyundai Merchant Marine Co Ltd will seek to acquire healthy assets of troubled shipper Hanjin Shipping Co Ltd.

Long Beach Port Acquires 125 Acres for Cargo Ops

U.S. Navy, Maritime Administration and California Environmental Protection Agency representatives joined City and Port officials today to commemorate the approval

Japanese Yards Mull Shipbuilding Alliance

Four major Japanese shipbuilders are in discussions to form an alliance in hopes of riding out the industry slump.   Mitsubishi Heavy Industries, Ltd. (MHI) announced

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1321 sec (8 req/sec)