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)

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Fratelli Neri Orders Damen ASD 3212 Tug

One of the largest Italian tug owners, Fratelli Neri S.p.A, ordered its first Damen tug, an ASD 3212, on 21 July 2015. The vessel will be the first ASD tug in

Three Rescued on Lake Tahoe

The Coast Guard and multiple agencies rescued three people Wednesday evening after they were reported missing on Lake Tahoe. At 9:45 p.m., Coast Guard Sector

More Vessels Call at Lerwick Port

The number of vessels using Lerwick Harbour in the first half of this year increased by 7% to 2,930, due mainly to more fishing boats compared to the same period

Bulk Carrier Trends

Shanghai 6th Best Shipping Center Globally

Shanghai has moved up the rankings of the world’s top shipping centers to sixth place, surpassing Dubai thanks to Free Trade Zone regulations and the Belt and Road Initiative,

ClassNK Releases Guidelines for CNG Carriers

Classification society ClassNK has released its Guidelines for Compressed Natural Gas (CNG) Carriers.   Global economic and population growth is bringing about

Asia Dry Bulk-Capesize Rates Could Soften

Capesize market "overheated" as rates near eight-month highs; optimism for a busier fourth quarter looms. Freight rates for capesize bulk carriers are likely

Ship Sales

China Shipping Orders Eight 13500 TEU Box Ships

China Shipping Container Lines has placed orders for eight 13,500 twenty-foot-equivalent container ships at Shanghai Jiangnan Changxing Shipbuilding, continuing

Pacific Basin Returns to The Black

Pacific Basin Shipping cut its half-year underlying losses by 32 per cent to US$14.6 million from a year ago, thanks to stringent cost-cutting efforts that helped

Diana to Acquire Two Post-Panamax Containerships

Diana Containerships Inc. announced that yesterday it signed, through two separate wholly-owned subsidiaries, two Memoranda of Agreement to purchase from an unaffiliated

Finance

Shanghai 6th Best Shipping Center Globally

Shanghai has moved up the rankings of the world’s top shipping centers to sixth place, surpassing Dubai thanks to Free Trade Zone regulations and the Belt and Road Initiative,

Pacific Basin Returns to The Black

Pacific Basin Shipping cut its half-year underlying losses by 32 per cent to US$14.6 million from a year ago, thanks to stringent cost-cutting efforts that helped

Oceanteam Acquires Oceanwind

Oceanteam Shipping has acquired the remaining 48% stake in fellow Dutch firm Oceanwind and is now the sole owner of Oceanwind Cable Storage & Handling Solutions.

News

Fratelli Neri Orders Damen ASD 3212 Tug

One of the largest Italian tug owners, Fratelli Neri S.p.A, ordered its first Damen tug, an ASD 3212, on 21 July 2015. The vessel will be the first ASD tug in

Three Rescued on Lake Tahoe

The Coast Guard and multiple agencies rescued three people Wednesday evening after they were reported missing on Lake Tahoe. At 9:45 p.m., Coast Guard Sector

More Vessels Call at Lerwick Port

The number of vessels using Lerwick Harbour in the first half of this year increased by 7% to 2,930, due mainly to more fishing boats compared to the same period

Mergers & Acquisitions

Oceanteam Acquires Oceanwind

Oceanteam Shipping has acquired the remaining 48% stake in fellow Dutch firm Oceanwind and is now the sole owner of Oceanwind Cable Storage & Handling Solutions.

Diana to Acquire Two Post-Panamax Containerships

Diana Containerships Inc. announced that yesterday it signed, through two separate wholly-owned subsidiaries, two Memoranda of Agreement to purchase from an unaffiliated

Vale Sells Four 'ValeMax' Bulkers to China Merchants

Brazilian mining company Vale SA said on Thursday that it expects to receive $448 million from the sale of four dry-bulk iron ore ships to China's state-owned China

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1994 sec (5 req/sec)