Shares of DryShips (DRYS) - Get Report were cruising higher Monday on news of a merger agreement that will give its CEO complete control over the Greek shipping company.

The stock price of DryShips rose nearly 35% to $5.17 on Monday after the Athens-based company, which operates a fleet of tankers and other ocean-going cargo ships, announced a merger agreement with SPII holdings.

DryShips closed Friday at $3.83 a share, up 2.13%.

Under the deal, SPII, which is controlled by company chairman and CEO, George Economou, will shell out $5.25 for the remaining shares of DryShares stock it does not already own.

The purchase price of $5.25 a share is a roughly 66% premium over DryShips closing price of $3.16 a share on June 12, with SPII having announced the next trading day its initial offer to acquire all the remain shares of the shipping firm, the company said. It also represents a 31% boost over the proposed purchase price in the initial offer, which stood at $4 a share.

DryShips had formed a special committee of independent advisors to consider the offer, with the company's board voting to move ahead with the committee's recommendation to proceed with the merger.

The agreement is expected to close in the fourth quarter of 2019.