Sea Star in ship management and ship owning acquisitions

Sea Star Capital Plc announced that at the meeting held on October 9, 2007, the Board of Directors decided to acquire the majority stake (at least 75%) in the share capital of a company that is actively involved in the sector of ship management, as well as in the share capital of 6 ship owner companies. The ships are all of Ro-Ro Multipurpose type and their value stands at EUR33 mln.
The total consideration for the acquisition of the aforementioned stakes is expected to reach EUR40 mln, EUR23 mln of which are expected to result from equity and EUR17 mln from an existing bank loan that the six ship owner companies will have.
The Board of Directors believes that according to the existing charter agreements and the development of the shipping sector worldwide, the investments will strengthen the Company’s share value in the long term. The Company anticipates that its turnover will increase to EUR19 mln per annum, while the increase in the profits before tax, interests and depreciations (EBITDA) will reach EUR11 mln per annum.
The Board of Directors confirms that its decision for the acquisition of the majority stake in a ship management company and in ship owner companies falls under its strategic goals, as these were formed after the expansion of its activities.
The aforementioned acquisition will be carried out on condition that an independent financial and legal audit will be carried out in the ship owner companies, as well as a technical inspection in the ships that will be acquired. These will be finalized in October 2007 and the Company will release a detailed announcement.