Key Takeaways:
Diana Shipping Inc. (NYSE: DSX) said 10.6 million shares of Genco Shipping & Trading Ltd. (NYSE: GNK), or 28.4 percent of the outstanding stock it does not already own, have been tendered into its $27.34-per-share acquisition offer as of June 26, with a final deadline of July 10 at 5 p.m. New York time.
"We are grateful to the significant group of shareholders that has tendered their shares and, in doing so, demonstrated their support for Diana's premium offer," said Semiramis Paliou, chief executive officer at Diana Shipping. "It has been nearly three weeks since we delivered to the Genco Board our increased offer of $27.34 per share."
Diana, which already owns more than 14 percent of Genco's outstanding shares, presented the increased offer directly to Genco's board on June 17. The bid comprises $24.80 in cash plus one Diana share valued at $2.54 based on the company's 30-day volume-weighted average price as of June 16. The Genco board has not responded or engaged with Diana since receiving the proposal, according to the company. The offer is backed by $1.412 billion in committed financing from six international banks with no financing condition.
The offer represents a 53 percent premium to Genco's undisturbed share price and a 6 percent premium to its net asset value per share based on VesselsValue data, at dry bulk asset values near 15-year highs. The tender is conditioned on Genco entering a definitive merger agreement, shareholders tendering a majority of outstanding shares on a fully diluted basis, termination of Genco's shareholder rights plan, and board approval under certain affiliate transaction provisions — all conditions that Diana says are solely within Genco's control. Diana originally launched the tender at $23.50 per share on May 4 and raised it to $24.80 in cash on May 27 before adding the stock component.
If completed, the acquisition would combine two of the largest publicly traded dry bulk fleets, creating a combined entity with significant scale in the sector. Diana operates 36 dry bulk vessels totaling about 4.1 million deadweight tons, with two methanol dual-fuel Kamsarmax newbuilds expected by 2028. Genco's fleet adds further Capesize and Supramax capacity. Shareholders who tender by the deadline may receive consideration sooner than those acquired in a subsequent second-step merger, Diana said.
This article is for informational purposes only and does not constitute investment advice.
