In addition, DryShips is to be merged into a subsidiary of SPII Holdings, a company controlled by Economou who is the chairman and CEO.
The parties have recently signed a definitive merger agreement to proceed with the transaction.
Economou previously held 83.35% of DryShips’ stock and revealed his intention to take the company private in June of this year.
The $5.25 share price represents a premium of around 66% over the company’s $3.16 closing stock price on 12th June, 2019, the last trading day before the company’s announcement of SPII’s initial offer to acquire all the shares in the company’s common stock not owned by SPII.
DryShips said that the share price reflected an increase of about 31% over the purchase price of $4 per share proposed in the initial offer.
The merger, subject to approval by the company’s stockholders, as well as other customary closing conditions, is expected to finalise in the fourth quarter of this year.
The news of the takeover comes months after DryShips completed the acquisition of 100% of the issued and outstanding shares of tanker pool operator Heidmar.
DryShips operates a mixed fleet of tankers, bulkers and offshore support vessels with a focus on bulkers.
Seward & Kissel acted as legal counsel to DryShips in this buyout deal. The S&K team representing DryShips was led by partners Gary Wolfe, Nick Katsanos, and Ted Horton and counsel Andrei Sirabionian.