Diana Shipping increased its unsolicited all-cash tender offer to acquire all outstanding common shares of Genco Shipping to $24.80 per share [1].
The move signals an aggressive attempt by Diana Shipping to consolidate its position in the dry-bulk sector by acquiring a U.S.-headquartered competitor. This bid follows a series of rejected attempts to merge the two shipping entities.
The new price is an increase from previous offers, which sources report ranged between $23.00 [1] and $23.50 [3] per share. Diana Shipping currently holds an ownership stake of approximately 14.8% [5] in Genco Shipping. To facilitate the acquisition, the tender deadline has been extended to June 26, 2024 [4].
A spokesperson for Diana Shipping said the increase reflects net asset value at cyclically high asset values and Diana's unwavering commitment to completing a value-maximizing transaction [2].
Genco Shipping has previously resisted these attempts. The Genco Shipping Board of Directors said the offer undervalues the company and does not include a control premium [1].
If the deal closes, Star Bulk Carriers would acquire 16 vessels from Genco Shipping [5]. The transaction remains unsolicited, meaning it has not been formally agreed upon by Genco's leadership despite the higher cash incentive.
“The offer undervalues the company and does not include a control premium.”
The escalating bid suggests that Diana Shipping views Genco's fleet as a strategic necessity, likely to capitalize on current market peaks in dry-bulk asset valuations. By bypassing the board and making a tender offer directly to shareholders, Diana is attempting to force a sale through financial pressure, though Genco's insistence on a 'control premium' indicates they believe the company is worth significantly more as a whole than the sum of its individual shares.
