Genco Rejects Diana Shipping’s $23.50 Cash Bid as Diana Plans Board Challenge

Overview

• On March 20, Genco said Diana’s indicative offer is below its intrinsic value and net asset value and fails to provide a control premium.
• The board said it remains open to engage if it receives an offer that reflects Genco’s value and the business’s upside potential.
• Diana, which owns about 14.8% of Genco (6,413,151 shares), submitted the revised $23.50-per-share cash bid on March 6.
• Diana says the offer is fully financed with commitments from leading banks and that its partnership with Star Bulk would not affect Genco shareholders.
• Calling this the second dismissal without engagement, Diana said it will seek to elect independent directors to consider its proposal and other value-creation options.