Star Bulk Announces Share Repurchase Agreement

Star Bulk, a shipping company, is set to repurchase 10 million of its own shares, leading to a surge in its stock. The shares rose by 5.5% to $18.65 during early trading, bringing some positivity to a year that has seen the stock in negative territory.

The buyback is a result of a repurchase agreement between Star Bulk and OCM XL Holdings. The agreement states that Star Bulk will acquire the seller's 10 million shares at an average price of $18.50. This move has received unanimous approval from the board of directors.

The repurchase is scheduled to take place on October 9th, and it will have a significant impact on the ownership structure. As a result of this deal, Oaktree Dry Bulk Holding, an affiliate of OCM, will see its aggregate ownership decrease from 25.2% to 17.2%. Consequently, the number of directors that this affiliate can nominate will be reduced from three to two. In order to comply with this change, Oaktree will need to make one of its designee directors resign.

This exciting development promises positive changes for Star Bulk, as it takes control of its own shares and reshapes the ownership structure within the company.