DryShips Inc. (NASDAQ:DRYS) (DryShips), a diversified owner and operator of ocean-going cargo vessels, Friday (May03) announced that it has agreed to acquire from an entity that may be deemed to be beneficially owned by the Company’s Chairman and CEO, Mr. George Economou, one Newcastlemax drybulk carrier built in 2017, for a purchase price of approximately $50.0 million.
The purchase price was based on the average fair market value of the vessel, as determined by independent third party broker valuations, and the transaction was unanimously approved by the board of the Company and a special committee of independent and disinterested directors and remains subject to satisfactory documentation.
The purchase includes existing financing in place and will be effected by way of long-term bareboat charter party with purchase obligation. The vessel is expected to be delivered to DryShips in the second quarter of 2019 and in connection with the transaction, an entity that may be deemed to be beneficially owned by Mr. George Economou, has also agreed to time charter the vessel on an index-linked time charter of flexible duration, with optionality for DryShips to convert this index-linked time charter to fixed rate charter.
TMS Dry Ltd., an entity that may be deemed to be beneficially owned by Mr. George Economou, has agreed to manage the vessel on the same terms that it manages other Company vessels but will forgo all commissions effective under the respective management agreement in connection with the aforementioned vessel purchase.