Genco Shipping Rejects Diana Offer, Says $24.80 Cash Bid Undervalues NAV
GNK•Genco Shipping warns shareholders that Diana Shipping’s tender offer provides only $24.80 per share in cash, not the $27.34 per share figure suggested, and excludes any control premium. Genco’s board unanimously rejected the undervalued offer relative to its net asset value and is reviewing a separate proposal of $24.80 cash plus one Diana share.
1. Diana Shipping’s Tender Offer Details
Diana Shipping’s tender offer is for only $24.80 per share in cash, despite references to $27.34 per share. Genco cautioned shareholders that the offer excludes any control premium and remains subject to multiple conditions before payment.
2. Board’s Rejection and Valuation Concerns
Genco’s board unanimously rejected the $24.80 cash bid, determining it meaningfully undervalues the company relative to its net asset value and fails to include a control premium. The board emphasized the company’s continued strong performance and asset base in its decision.
3. Review of Non-Binding Proposal
In addition to the cash tender offer, Diana made an indicative, non-binding proposal to acquire Genco for $24.80 in cash plus one share of Diana stock. Genco’s board is taking time to review this proposal with Jefferies LLC as financial advisor, Herbert Smith Freehills Kramer and Sidley Austin LLP as legal counsel, and Morgan Stanley & Co. LLC as special advisor.
4. Company Fleet Profile
Genco Shipping & Trading Limited operates a modern drybulk fleet of 43 vessels with an average age of 12.6 years and an aggregate capacity of approximately 4,935,000 deadweight tons, transporting commodities like iron ore, coal, grain, and steel products on global routes.
