Eagle Bulk Shipping (NYSE:EGLE) stock is on the rise Tuesday after the company announced a merger agreement with Star Bulk Carriers (NASDAQ:SBLK).
That deal will have holders of EGLE stock receive 2.6211 shares of of SBLK stock for each EGLE share that they own. That represents a price of $52.60 per share for EGLE stock. Investors will note that this is a 17% premium over the stock’s prior closing price on Dec. 8. This has the deal worth $500 million.
Eagle Bulk Shipping and Star Bulk Carriers’ boards have both given their unanimous support to the deal. Now, the deal just needs approval from shareholders of EGLE stock and regulators. If all goes well, the deal should close in the first half of 2024.
More EGLE Stock Merger Details
Once the merger of the two companies is complete, SBLK stock shareholders will own 71% of the combined entity. That will leave EGLE stock shareholders owning the remaining 29%.
Investors will also note that the combined company will be the “largest U.S. listed dry bulk shipping company.” With that comes a pro forma market capitalization of roughly $2.1 billion. The combined company will also have liquidity of almost $420 million.
EGLE stock is up 11.1% as of Tuesday morning with some 550,000 shares traded. The stock’s daily average trading volume is about 152,000 shares.
Investors on the lookout for more of the most recent stock market stories are in the right place!
We have all of the biggest stock market news that traders need to know about on Tuesday! With that comes our coverage of C4 Therapeutics (NASDAQ:CCCC) stock, Hasbro (NASDAQ:HAS) layoffs and State Street (NYSE:STT) layoffs. You can read up on all of these matters below!
More Stock Market News for Tuesday
- Why Is C4 Therapeutics (CCCC) Stock Up 72% Today?
- Hasbro Layoffs 2023: What to Know About the Latest HAS Job Cuts
- State Street Layoffs 2023: What to Know About the Latest STT Job Cuts
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
