Financial and legal advisors have been appointed to assist DryShips board members in evaluating George Economou's proposed takeover of the company.
A special committee of DryShips directors has been formed to consider the non-binding offer of $4.00 per share submitted by Economou's privately owned entity SPII Holdings on 12 June.
Evercore has been retained as financial advisor to the special committee, which is comprised of George Kokkodis (its chairman), Andreas Argyropoulos and George Demathas, all of whom are independent directors of DryShips.
Fried, Frank, Harris, Shriver & Jacobson has been retained as the special committee's legal advisor, a filing said on Monday.
This is not the first time the firms have worked together.
Evercore acted as sales agent in an offering of DryShips shares during October 2013.
Fried, Frank, Harris, Shriver & Jacobson has represented DryShips since at least 2011, when the New York-based law firm represented the shipowner in its agreement to acquire the outstanding shares of OceanFreight Inc.
The offer
Economou, who is DryShips' chairman and chief executive, aims to acquire the remaining 16.6% of the company he does not already own.
DryShips' share price jumped 24% to $3.93 on the New York Stock Exchange within 24 hours of the takeover offer being announced.
Shares are currently trading at $3.85 as of 11:30am in New York.
George Economou's 83.4% stake in DryShips is worth $278.6m at the current share price.
DryShips has been known historically as a bulker owner, but has acquired a fleet of six tankers over the past two years.
It bought out Connecticut-based tanker pool operator Heidmar in mid-June.
DryShips listed on the New York Stock Exchange in 2005 and was known as a blue-chip stock for some years, particularly during the pre-2008 commodities super-cycle.
Investor enthusiasm, however, waned when shipping markets struggled to bounce back in the years following the 2008 global economic slowdown.
The owner has conducted eight reverse stock splits since 2016, while separate listings for its tanker and VLGC fleets have been planned and later aborted.
DryShips told TradeWinds it was unable to comment on the advisors' appointment.
