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Bulk carrier purchase makes Star Bulk global leader

Star Bulk is buying 34 ships from Excel Maritime in a deal amounting to $635 million.


Excel Maritime has come to a with final agreement with Peter Pappas' Nasdaq listed Star Bulk Carriers, to sell 34 ships for a total sum of $ 634,910,000.

Specifically, following the agreement Excel will get 29,917,000 ordinary shares of Star Bulk, $32,5 million in cash, 231 million in bridge financing and about $ 25 million from a bilateral guaranteed loan.

The delivery of the vessels is expected to begin in August and be completed by 31 December.

Excel has 34 dry bulk carriers (6 Capesize ships, 14 Kamsarmax, 12 Panamax and 2 Handymax). Until the completion of the sale, the company will remain under the management of Messrs Kostas Koutsoumpelis and Pavlos Kanellopoulos.

Excel will hold 26.4% of the shares of Star Bulk, which through the acquisition of the 34 ships is the largest listed drybulk company, with a fleet of 103 ships, and with a total capacity of about 11.85 million tonnes.

Recently Star Bulk completed the merger with Oceanbulk Shipping of Oaktree. Major shareholders are Greek shipowner Peter Pappas and American private equity Oaktree Capital.