The deal will be carried out through a non-recourse fully-owned subsidiary of Star Bulk, and includes five Newcastlemaxes Capesize vessels, two Mini Capesize vessels, eight Post Panamax/Kamsarmax vessels and one Ultramax vessel.
Under the all-share deal, Star Bulk has agreed to issue around 10.5 million common shares to sellers of the vessels. The share value will be equal to around 14.1% of the company’s common shares after the deal concludes.
Consideration of the deal will be determined on the basis of the average vessel valuations as measured by independent vessel appraisers and is subject to adjustments for cash, debt, and CAPEX on the deal closing date.
Following the deal, Star Bulk will assume a debt of $310m.
The deal is subject to the implementation of definitive finance agreements and customary closing conditions and is scheduled to be completed by the second quarter of this year.
After completion of the deal, an entity affiliated with Augustea Atlantica will conduct the technical management of all the 16 vessels, while Star Bulk will look after their commercial management.
An entity affiliated with family members of Star Bulk Carriers CEO Petros Pappas will be a passive minority investor in three of the 16 vessels.
Pappas said: “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.”