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Diana Shipping Inc. has extended its tender offer to acquire all outstanding shares of Genco Shipping & Trading not already owned by the company, giving shareholders until July 24 to decide whether to participate in the proposed takeover.
The Athens based dry bulk owner said that, as of July 10, 11,081,926 shares had been tendered into the offer. That represents 29.7 percent of the Genco shares not already owned by Diana. The figure excludes Diana’s existing stake of more than 14 percent in Genco.
Revised proposal remains available
The extended offer follows Diana’s latest proposal to Genco’s board, valuing the transaction at $27.34 per share. The consideration consists of $24.80 in cash plus one Diana share, which the company valued at $2.54 based on its 30 day volume weighted average share price as of June 16.
The proposed acquisition is backed by $1.412 billion in committed financing from six international banks, with Diana stating that the offer carries no financing condition.
According to the company, the proposal 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. Diana also noted that the offer comes at a time when dry bulk vessel values are at or near their highest levels in the past 15 years.
Management calls for negotiations
Semiramis Paliou, Chief Executive Officer of Diana Shipping, said additional shareholders had tendered their shares but acknowledged that the transaction cannot be completed through the tender process alone.
She said both companies’ leadership teams and advisers need to negotiate in good faith if the combination is to move forward and deliver what Diana considers full value for Genco shareholders.
The extension keeps pressure on Genco’s board while allowing more shareholders time to evaluate the proposal. It also signals that Diana continues to pursue a negotiated transaction rather than relying solely on shareholder participation in the tender offer.
If completed, the acquisition would further consolidate ownership within the listed dry bulk shipping sector at a time when vessel asset values remain elevated and industry participants continue to assess fleet growth, capital allocation and shareholder returns.
