The US-listed dry bulk shipping sector has witnessed significant consolidation over the past two years, with high-profile deals such as Star Bulk’s merger with Eagle Bulk and CMB.Tech’s acquisition of Golden Ocean. Now, another major transaction is unfolding as Greece’s Diana Shipping has formally launched a proposal to acquire Genco Shipping & Trading, marking one of the most ambitious takeover attempts in the sector.
Diana Shipping Offers $20.60/Share, Valuing Genco at $891 Million
After months of accumulating shares and closely monitoring Genco, Diana Shipping has offered $20.60 per share in cash, valuing the company at $891 million. With Diana already owning 14.8% of Genco, it would need to pay $759 million for the remaining shares.
CEO Semiramis Paliou confirmed that the acquisition will be funded through a new $1.1 billion syndicated loan facility arranged by DNB and Nordea. The offer represents a clear premium—15% above Genco’s last closing price and up to 23% above recent trading averages positioning it as an attractive cash-out opportunity for Genco shareholders.
Paliou emphasized that Diana plans to optimize the combined fleet through selective vessel divestments and highlighted that the company values the expertise of Genco’s employees, aiming to select the best talent from both organizations.
NAV Discount and Defensive Measures Shape the Acquisition Battle
Like many dry bulk companies, Genco’s share price has been trading below its net asset value (NAV). Analysts estimate Genco’s NAV between $20.80 (Clarksons Securities) and $22.90 (Jefferies) per share, meaning Diana’s offer is broadly in line with NAV.
This situation mirrors recent industry moves: when CMB.Tech acquired Golden Ocean, it paid about a 14% premium to NAV. Diana’s approach is comparatively conservative but still strategic, leveraging the broader NAV discount trend across the dry bulk segment.
Genco, anticipating a potential takeover bid, adopted defensive measures earlier this year. A poison-pill plan introduced on October 1 was triggered at 15% ownership just above Diana’s stake at the time. Later, in November, the company amended the plan to lower the threshold to 10% for other active investors, signaling clear concern over Diana’s intentions and a desire to prevent stake transfers that could aid a takeover.
Diana Shipping’s attempt to acquire Genco marks another significant chapter in the ongoing consolidation of the dry bulk shipping market. The proposed deal, supported by substantial financing and a strategic focus on fleet optimization, reflects Diana’s ambition to expand its influence in the sector. However, with Genco’s defensive actions and varying NAV valuations, the road ahead may involve negotiations and potential resistance. If successful, the merger would create one of the largest and most competitive dry bulk fleets in the US-listed market, shaping the industry’s future direction.
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Source: Lloyd’s List
