Diana Shipping Launches $23.50 Cash Tender Offer With 31% Premium
Diana Shipping Inc launched a fully financed all-cash tender offer for Genco Shipping & Trading at $23.50 per share, representing a 31% premium and approximately 1.0x NAV. The company secured $1.433 billion in committed financing and a $470.5 million vessel sale pact with Star Bulk to fund the purchase.
1. Tender Offer Launch
Diana Shipping Inc has commenced a tender offer to acquire all outstanding Genco Shipping & Trading shares for $23.50 per share in cash, expiring June 2, 2026. The offer follows Genco’s board refusal to engage on previous fully financed proposals at $20.60 and $23.50.
2. Financing and Vessel Divestiture
The transaction is backed by $1.433 billion in fully committed financing arranged by DNB Carnegie, Nordea, BNP Paribas, Standard Chartered, Deutsche Bank and Danske Bank. Concurrently, Diana has agreed to sell 16 of Genco’s vessels to Star Bulk Carriers for $470.5 million upon deal closing to reduce acquisition funding requirements.
3. Shareholder and Board Dynamics
Diana launched the offer after Genco’s board rejected all engagement attempts and maintained a shareholder-approved poison pill to block tendering. To challenge board entrenchment, Diana nominated six independent directors for election at Genco’s upcoming annual meeting to ensure fiduciary duties to shareholders.