June 16 (Reuters) - Star Bulk Carriers Corp said it would buy fellow dry bulk carriers Oceanbulk Shipping LLC and Oceanbulk Carriers LLC in an all-stock deal that will make Oaktree Capital Management its largest shareholder.
Star Bulk Carriers is issuing 54.104 million new shares to buy the Oceanbulk companies, valuing the deal at about $653 million based on Star Bulk Carrier's Friday close of $12.07 on the New York Stock Exchange.
After closing, the Athens, Greece-based company will be the largest U.S.-listed dry bulk shipper, with a market value of about $1 billion, Star Bulk Carriers said on Monday.
The new shares will go to affiliates of Oaktree Capital Management and Star Bulk Carriers' non-executive chairman, Petros Pappas, and some of his immediate family members.
Oaktree will own 61.3 percent of Star Bulk Carriers, while Pappas and family will own 12.5 percent.
The combined company will have a fleet of 69 vessels engaged in carrying commodities such as coal, iron ore and grain.
(Reporting by Swetha Gopinath in Bangalore; Editing by Ted Kerr)