2023-06-22 17:53:27 ET
Eagle Bulk Shipping ( NYSE: EGLE ) +3.9% post-market Thursday after saying it agreed to repurchase ~3.8M common shares held by Oaktree Capital Management, representing the fund's entire ~28% ownership stake in the company, for $219.3M.
Eagle Bulk ( EGLE ) believes the transaction "will be significantly accretive to NAV per share and EPS in future periods based on historically strong supply-side fundamentals," CEO Gary Vogel said.
The company said it remains committed to its balanced capital allocation strategy, including maintaining its current dividend policy of 30% of net income, which it said will be helped by the transaction.
Also, Eagle Bulk's ( EGLE ) board has adopted a limited duration shareholder rights plan, which it said will reduce the likelihood that any person or group gains control of the company through open market accumulation or other abusive tactics.
More on Eagle Bulk Shipping:
- Financial and valuation comparison to sector peers
- Analysis: Eagle Bulk Shipping: Danaos Buy-In, Likely Dividend Surprise In Q2 Create Opportunity
- Stock price return: Down 5% YTD, down 5.5% in the past 12 months
For further details see:
Eagle Bulk Shipping buys back Oaktree Capital's stake for $219M