Greeks take over German dry cargo fleet
Erck Rickmers sells 7 bulk carriers to Pappas’ Star Bulk and becomes minority shareholder
Star Bulk has bought 7 bulkers from E R Capital
The Greek shipping company, owned by Petros Pappas, paid the Erck Rickmers company USD 157 million, a price that includes shares and charter contracts.
The takeover will be completed in two steps: first, two 8-year old Capesize (180, 000 dwt ), E R Burgoyne and E R Brandenburg, and the 55,000dwt E R Brighton, will be purchased in Q4 2018, Erck Rickmers will receive USD 41.7 million in cash and a 1.45% stake in Star Bulk; then, for left 4 bulkers, Rickmers will get USD 115.4 million if Star bulk declares a call option by April 1st 2019 .Should this not happen, E R Capital Holding can then draw a put option up to April 4th 2019 worth USD 105.39 million. The ships should be taken over by Star Bulk between April and July 2019.
After the transaction Star bulk will have a fleet of 115 bulkers with a total capacity of 13.4 million dwt and an average age of 7.5 years.