Star Bulk Acquires Stake in Interchart Shipping
- Business & Finance
Star Bulk Carriers Corp. said that the company acquired 33% of the total outstanding common stock of Interchart Shipping Inc. (Interchart), a Liberian company which acts as chartering broker to Star Bulk’s fleet for total consideration of $400,000 consisting of $200,000 in cash and 22,598 restricted common shares of Star Bulk, to be issued on March 31, 2014.
Interchart was founded in 1986 and under the same management since 2003, has performed over 640 fixtures. It maintains offices in Athens, Greece and employs 6 senior brokers. The ownership interest was purchased from an entity affiliated with family members of our Chairman, including Star Bulk’s director Ms. Pappas.
Also on February 25, 2014, the company entered into a services agreement, with Interchart for chartering, brokering and commercial services for its vessels for an annual fee of $685,000. This fee is adjustable for changes in Star Bulk’s fleet pursuant to the terms of the services agreement. Under the services agreement, all previously agreed upon brokerage commissions due to Interchart are canceled retroactively from January 1, 2014.
Spyros Capralos, President and Chief Executive Officer of Star Bulk, commented: “This transaction is consistent with our strategy to enhance our in ‐ house vessel management capabilities and reduce our costs from operations. After having made substantial enhancements to our technical ship management capabilities, we are now moving forward with a focus on expanding the Company’s capabilities with the commercial management of vessels. We believe this transaction merges the interests of Interchart and the Company and benefits our shareholders.”
Star Bulk Carriers Corp, March 18, 2014