Diana Shipping Raises Genco Bid to $23.50 with $1.43B Financing
Diana Shipping raised its takeover bid for Genco to $23.50 per share, representing a 31% premium to the undisturbed November 21 closing price, backed by $1.43 billion in committed financing. Star Bulk Carriers has agreed to buy 16 Genco vessels for $470.5 million if Diana’s acquisition succeeds.
1. Bid Increase Details
Diana Shipping increased its all-cash offer for Genco to $23.50 per share, marking a 31% premium over the undisturbed closing price on November 21. The company currently holds approximately 14.8% of Genco’s outstanding shares and has urged the board to engage in negotiations.
2. Financing and Vessel Disposition
The revised proposal is backed by $1.43 billion of fully committed financing arranged with international banks. Under a separate agreement, Star Bulk Carriers will acquire 16 Genco vessels, including one Newcastlemax, six Capesize, seven Ultramax and two Supramax, for $470.5 million, totaling 1.8 million dwt and average age of 11.4 years.
3. Investor Response
Following the announcement, shares of Diana Shipping, Genco Shipping and Star Bulk Carriers declined by approximately 4.9%, 6% and 4.2% respectively, reflecting cautious investor sentiment despite the enhanced offer and secured funding.