Genco Reviewing $23.50 Diana Shipping Offer as Sell-Side NAV Exceeds $26.50
Genco Shipping & Trading is reviewing Diana Shipping’s $23.50-per-share cash tender offer, unchanged from its March 6 bid that the Board unanimously rejected for undervaluing its fleet. With sell-side NAV estimates of $25.80 mean and $26.50 median, the Board will issue its recommendation within 10 business days.
1. Tender Offer Details
Genco Shipping & Trading confirmed that Diana Shipping launched a conditional unsolicited tender offer to acquire all outstanding shares at $23.50 per share in cash, unchanged from its March 6 proposal previously reviewed and rejected by Genco’s Board.
2. Board Valuation and NAV Comparison
The Board unanimously rejected the initial proposal, finding it below Genco’s market value and net asset value; sell-side analysts peg mean NAV at $25.80 per share and median NAV at $26.50 during rising drybulk asset prices.
3. Next Steps and Timeline
Genco’s Board will finalize and file its recommendation statement on Schedule 14D-9 within 10 business days, advising shareholders on whether to tender and urging no shareholder action until the formal recommendation is released.