Eagle Bulk Shipping will hold a shareholder vote on 5 April on whether it will be merged into a US-listed dry cargo titan.
The Connecticut shipowner filed papers with the US Securities & Exchange Commission on Monday setting the date for the vote on the merger deal with Greece’s Star Bulk Carriers.
Petros Pappas-led Star Bulk announced in December that it had swooped in to buy Eagle Bulk in a $500m deal that will swell the Athens outfit to 169 bulkers and a market capitalisation of around $2.1bn.
Each Eagle Bulk share will be converted into about 2.62 Star Bulk shares.
Star Bulk expects to issue 33.8m shares to pay for the deal, which takes into account bonds that can be converted into equity.
Eagle Bulk chairman Paul Leand wrote in a letter to shareholders: “The Eagle board has unanimously determined and declared that the merger agreement and the consummation of the transactions contemplated thereby, including the merger, are advisable and fair to, and in the best interests of, Eagle and the Eagle shareholders.”
Eagle’s board unanimously approved the merger, he said.
In addition to voting on the merger agreement, shareholders will be asked to weigh in on related measures, including issuing shares to cover convertible notes and an advisory vote on compensation to Eagle Bulk executives.
As TradeWinds has reported, Eagle Bulk chief executive Gary Vogel will receive a $9m pay package if the merger goes through, as Pappas will keep the top job in the combined company.
