Diana Shipping Takes its Case to Genco Shareholders
Diana Shipping has taken its bid to acquire Genco Shipping & Trading directly to the shareholders, after months of stalled negotiations. In an open letter, Diana's CEO Semiramis Paliou accused Genco's board of refusing to engage with the fully financed $23.50-per-share cash offer.
Key Points of the Offer
- The bid represents a 31% premium to Genco's undisturbed share price.
- The offer is valued at around net asset value, considering dry bulk asset prices are near 15-year highs.
- Diana has secured $1.433bn in committed funding from six banks, eliminating execution risk.
Diana has intensified its takeover push, which was first launched last year and gained momentum in March with the backing of Greek bulker giant Star Bulk. Genco has repeatedly rejected the approach, arguing it undervalues the business and fails to reflect its long-term upside.
Governance Concerns and Next Steps
Diana has shifted its focus to governance, accusing Genco's board of entrenchment through measures such as a poison pill, an undisclosed special committee, and changes to executive compensation structures. Diana is pressing ahead with plans to replace the board, nominating six independent directors ahead of the upcoming annual meeting.