Star Bulk to acquire 16 vessels from Diana for $470.5 million

ATHENS - Star Bulk Carriers Corp. (NASDAQ:SBLK) announced Friday it has entered into a conditional agreement to acquire 16 vessels from Diana Shipping Inc. (NYSE:DSX) for $470.5 million in cash.

The transaction is contingent on Diana successfully acquiring all outstanding shares of Genco Shipping & Trading Ltd. (NYSE:GNK) not already owned by Diana. The agreement is also subject to customary conditions for ship purchase transactions.

The 16-vessel fleet includes one Newcastlemax, six Capesize vessels, seven Ultramax vessels and two Supramax vessels, with a total carrying capacity of 1.8 million deadweight tons and an average age of 11.4 years.

If completed, the acquisition would bring Star Bulk’s fleet to 157 ships with a total carrying capacity of 15.9 million deadweight tons and an average age of 12.0 years.

Star Bulk plans to fund the purchase through existing cash reserves from previous vessel sales and new debt financing. The company said it has received multiple financing offers from institutions and is evaluating them.

As of December 31, 2025, Star Bulk reported a cash balance of $501.9 million. The company currently has 27 unlevered ships with an aggregate market value of $628.0 million and access to revolving credit facilities with $110.0 million available.

"As a leading public company in the dry bulk space, we firmly believe consolidation in our sector creates value for all shareholders," said CEO Petros Pappas in a statement.The acquisition comes as Star Bulk has delivered strong returns to investors, with shares up 57% over the past year and 28% year-to-date. The company, with a market capitalization of $2.69 billion and revenue of $1.04 billion over the last twelve months, maintains a healthy current ratio of 1.78, indicating liquid assets well exceed short-term obligations. According to InvestingPro analysis, the stock appears undervalued relative to its Fair Value, placing it among compelling opportunities on the platform’s Most Undervalued list. Investors seeking deeper insights can access over 10 additional InvestingPro Tips for SBLK, plus comprehensive Pro Research Reports available for this and 1,400+ other US equities.

Star Bulk currently operates a fleet of 141 vessels on a fully delivered basis, adjusted for eight Kamsarmax vessels under construction, with an aggregate capacity of 14.0 million deadweight tons. The company operates with a moderate debt level, with total debt representing 30% of total capital, supporting its financial flexibility for strategic acquisitions.

The information is based on a company press release statement.

In other recent news, Star Bulk Carriers Corp reported strong financial results for the fourth quarter of 2025. The company achieved an earnings per share (EPS) of $0.65, surpassing the forecasted $0.63. Revenue reached $300.59 million, significantly outperforming the expected $261.48 million. Despite these positive earnings and revenue results, the stock price saw a minor decline in after-hours trading. Analysts have noted these developments, with some firms possibly adjusting their outlooks based on the robust financial performance. The company continues to be a focus for investors due to its recent financial achievements. These developments reflect a positive trajectory in the company’s financial health.

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