Star Bulk Carriers Corp. (NasdaqGS:SBLK) entered into a definitive agreement to acquire Eagle Bulk Shipping Inc. (NYSE:EGLE) for approximately $540 million on December 11, 2023. Under the terms of the agreement, 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. 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. The combined company will operate as Star Bulk Carriers Corp.

and will be headquartered in Athens, Greece, while maintaining offices in Stamford, Connecticut; Singapore; Copenhagen; and Limassol. The combined company will be led by the current management team of Star Bulk and will be joined by certain senior executives of Eagle. Upon close, Pappas will serve as CEO of the combined company and Spyros Capralos, current Chairman of Star Bulk, will serve as Chairman of the combined company?s Board.

One member of the Eagle Board will join the Star Bulk Board at closing. The transaction is subject to approval by Eagle shareholders, receipt of applicable regulatory approvals and satisfaction of other customary closing conditions. The transaction was unanimously approved by the boards of directors of both companies.

The transaction is expected to close in the first half of 2024. Cravath, Swaine & Moore LLP is serving as its legal counsel to Star Bulk. Houlihan Lokey is serving as financial advisor to Eagle and Akin Gump Strauss Hauer & Feld LLP is serving as legal counsel to Eagle and Hogan Lovells US LLP is serving as legal counsel to the Board of Directors of Eagle.