Overview
- Diana on June 17 increased its proposal to an implied $27.34 per Genco share made up of $24.80 in cash plus one Diana share valued at $2.54 based on a 30-day VWAP.
- Diana says the cash portion is fully funded by $1.433 billion of committed financing from six international banks and that the offer carries no financing condition.
- The offer remains conditional on Genco signing a definitive merger agreement, a majority of shareholders tendering shares, the shareholder rights plan being inapplicable or terminated, and the Genco board approving the transaction under affiliate-transaction rules.
- Genco urged shareholders to submit its WHITE proxy by the June 17 deadline and highlighted recommendations from ISS, Glass Lewis and Egan-Jones to support its directors while accusing Diana of undervaluing the company and of questionable trading disclosures.
- The contest could reshape consolidation in drybulk shipping because asset values are at multi-year highs, but the outcome is unresolved and will hinge on shareholder votes, the rights plan and whether the board accepts or delays the meeting for further review.