Eagle Shareholders To Receive 2.6211 Shares Of Star Bulk Common Stock For Each EGLE Share, Represents Total Consideration Of $52.60 Per Eagle Share
Portfolio Pulse from Benzinga Newsdesk
Eagle Bulk Shipping Inc. shareholders are set to receive 2.6211 shares of Star Bulk Carriers Corp. common stock for each share of Eagle they own. The deal values Eagle shares at $52.60 each, a 17% premium over the closing price on December 8, 2023. Post-transaction, Star Bulk and Eagle shareholders will own about 71% and 29% of the merged entity, respectively.
December 11, 2023 | 9:36 pm
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POSITIVE IMPACT
Eagle Bulk Shipping Inc. shareholders are set to receive a 17% premium on their shares through a stock-for-stock merger with Star Bulk Carriers Corp., with each EGLE share valued at $52.60.
The announcement of a premium on current share price typically leads to a positive short-term reaction in the stock market as it reflects a valuation higher than the recent trading price. The 17% premium is significant and should be seen positively by EGLE shareholders.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Star Bulk Carriers Corp. will see its shareholder composition change, owning 71% of the combined company after the merger with Eagle Bulk Shipping Inc., with the deal implying a premium for EGLE shareholders.
While the merger is generally positive, the short-term impact on SBLK's stock price may be neutral as the market digests the implications of the stock-for-stock transaction and the dilution of current SBLK shareholders' stakes.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80