By Elias Schisgall
Diana Shipping raised its unsolicited bid to acquire fellow dry bulk shipping company Genco Shipping & Trading, and said Star Bulk Carriers had agreed to acquire 16 of Genco's vessels if the acquisition closes.
Diana, which owns about 14.8% of Genco's outstanding shares, said Friday that it would pay $23.50 a share for the remaining shares. It said the offer represents a 31% premium to Genco's undisturbed closing share price as of Nov. 21, the last trading day before Diana first offered to buy the company.
The increased proposal is supported by about $1.43 billion of committed financing from banks including DNB Carnegie, Nordea, BNP Paribas and Deutsche Bank, Diana said. The proposed price also equals Genco's net asset value based on an estimate by Clarksons Securities, the company added.
Star Bulk, another dry bulk shipper, has agreed to buy 16 Genco vessels for $470.5 million if the acquisition is successful, Diana said.
Diana Chief Executive Semiramis Paliou urged Genco's board to engage with the proposal. "Diana's increased offer to acquire Genco--now supported by fully committed financing from leading banks and a definitive agreement with Star Bulk--reflects our continued conviction in the financial and strategic merits of the transaction," Paliou said Friday.
Genco received the updated offer, the company confirmed in a Friday afternoon statement, and said its board would review the proposal.
Genco rejected Diana's initial offer of $20.60 a share in January, saying the proposal undervalued the company and citing concerns about the reliability of its financing. The initial offer was less than Genco's net asset value, it said at the time.
Genco instead proposed an alternative transaction in which Genco would acquire Diana.
Diana dismissed the counteroffer as a distraction tactic and nominated candidates to fill all the seats on Genco's board of directors, setting up a potential proxy fight.
Genco shares were trading down 4.5% to $22.11 in Friday afternoon trading. Diana was down 5.7% to $2.38.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
03-06-26 1432ET
