Once the 54m share (around $650m) deal is completed, private equity outfit Oaktree will own 61.3% of Star Bulk's shares, with the Pappas family holding 12.5%.
The transaction will see Petros Pappas become ceo of Star Bulk as its value rises to over $1bn.
The acquisition of Oceanbulk brings 15 vessels with an average age of 5.6 years into Star Bulk, along with shipbuilding contracts for a further 26 vessels with delivery dates through until 2016.
Star Bulk will have 32 ships on the water and 37 newbuilds on order when the deal is closed, for a total fleet of 69 ships and 8.7m dwt.
Petros Pappas, chairman of Star Bulk Carriers, commented: "I am looking forward to assuming the ceo role and will focus on, among other things, maximizing the performance of the existing fleet, overseeing the successful delivery of the significant existing newbuilding program, and positioning the Company to grow quickly and significantly in the highly fragmented dry bulk sector".
"The transaction marks an important next step in the evolution for Star Bulk," added Spyros Capralos, current president & ceo of Star Bulk, who will become non-executive chairman after the deal.
"Since 2013, Star Bulk has dramatically improved its market capitalization and liquidity through the successful completion of the rights offering and add on equity offering, modernized its existing fleet and placed a series of significant newbuilding orders to position the company for the future. The combined business will be well positioned to capitalize on an improving dry bulk market with significant operating leverage to rising rates."
Seward & Kissel LLP served as lead counsel to Star Bulk Carriers in connection with the transaction.
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