Genco rejects Diana Shipping’s revised $23.50 per share takeover bid

Genco Shipping & Trading has unanimously rejected Diana Shipping’s revised non-binding indicative proposal to acquire all outstanding Genco shares not already owned by Diana for $23.50 per share in cash.

Genco’s board, advised by a special committee of independent directors, said the offer substantially undervalues the company, fails to provide an appropriate premium and presents significant execution risks.

Genco pointed to several flaws in Diana’s proposal. The offer sits below the company’s mean analyst net asset value estimate of $25.10 per share, a figure that has risen alongside drybulk asset values. Genco also accused Diana of selectively using the lowest published NAV estimate, from Clarkson Securities, as the basis for its bid.

The board also flagged a financing discrepancy. Diana announced $1.433 billion in fully committed financing, but the publicly filed commitment letter specifies only $1.102 billion in actual commitments.

Genco took particular aim at Diana’s plan to sell 16 Genco vessels to competitor Star Bulk. The company said the vessels were priced at a 14% discount to average broker valuations. The Genco Valkyrie, a 2020-built Newcastlemax, was agreed at $66 million — 12% below its $75 million broker valuation. The Genco Constantine was set at $24 million, 17% below valuation, and the Genco Enterprise at $19 million, 24% below.

Genco noted its own strong financial footing. The company paid its 26th consecutive quarterly dividend in Q1 2026 and has distributed $323 million in total dividends over the past six years. It expects a higher dividend in Q1 2026 compared to a year earlier.

The board said it remains open to engaging with Diana if it receives an offer that appropriately reflects Genco’s full value. Genco had previously proposed an alternative structure in which it would acquire Diana, an approach Diana declined to pursue.

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