STAMFORD, Conn. - Shareholders of Eagle Bulk Shipping Inc. (NYSE:EGLE), a prominent shipowner-operator, have given a green light to the company's merger with Star Bulk Carriers (NASDAQ:SBLK) Corp., as well as the issuance of additional shares related to its convertible senior notes. The approval was secured during a special meeting held on Friday, with approximately 65% of Eagle's outstanding shares, representing about 99% of shares present, backing the merger proposal.
The merger agreement, initially announced on December 11, 2023, entails each Eagle share being exchanged for 2.6211 shares of Star Bulk's common stock at the effective time of the merger, excluding shares owned by the involved entities or their subsidiaries.
Additionally, shareholders authorized the potential future conversion of Eagle's 5.00% Convertible Senior Notes due 2024 beyond the conversion share cap stated in the indenture with Deutsche Bank Trust Company Americas, with around 96% of votes in favor.
Eagle Bulk Shipping expects the merger to be finalized around April 9, 2024, subject to the fulfillment of remaining closing conditions. This strategic move is anticipated to enhance the company's fleet size and operational capacity, as Eagle Bulk Shipping is recognized for owning one of the world's largest fleets of Supramax/Ultramax vessels.
The merger is part of Eagle's vision to provide global transportation solutions to a diverse clientele, including miners, producers, traders, and end users. The company's headquarters are located in Stamford, Connecticut, with additional offices in Singapore and Copenhagen.
Final voting results from the special meeting will be documented in Eagle's Form 8-K, which will be filed with the Securities and Exchange Commission after certification by the inspector of elections. This information is based on a press release statement issued by Eagle Bulk Shipping Inc.
InvestingPro Insights
As Eagle Bulk Shipping Inc. (NYSE:EGLE) navigates through its merger with Star Bulk Carriers Corp. and the issuance of additional shares, investors and stakeholders are closely monitoring the company's financial health and market performance. InvestingPro data and insights offer a deeper look into Eagle Bulk Shipping's current financial landscape.
InvestingPro Data indicates a Price/Earnings (P/E) Ratio of 54.53, which suggests that the market has high expectations of the company's future earnings. The Price/Book (P/B) Ratio stands at 1.15, pointing towards a valuation that is in line with the company's book value. Additionally, Eagle Bulk Shipping has shown a Price Total Return of 47.6% over the past year, signaling a strong performance in the market.
Among the InvestingPro Tips, two insights stand out for Eagle Bulk Shipping. Firstly, the company has been identified to have a high shareholder yield, which could be attractive for investors seeking income in addition to capital gains. Secondly, analysts predict that the company will be profitable this year, which aligns with the positive market sentiment reflected in the stock's recent price uptick.
For investors who are interested in a more comprehensive analysis of Eagle Bulk Shipping, additional InvestingPro Tips are available, which include expectations around net income growth and an assessment of the company's short-term obligations compared to its liquid assets. There are 11 additional tips listed on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/EGLE. To gain further insights and to make more informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.