Diana Shipping has made its move on New York-listed Genco Shipping & Trading, tabling a cash offer to acquire all remaining shares it does not already own at $20.60 per share.
The Athens-based owner, led by chief executive Semiramis Paliou, holds 14.8% of Genco after steadily building its position since first disclosing a 7.7% stake in July. The offer represents a 15% premium to Genco’s closing price on November 21, and around a 21% premium to the price when Diana first revealed its investment. It also sits in line with Genco’s 10-year share price high.
Paliou said the deal offers Genco shareholders “immediate cash value” at an attractive level relative to the company’s historical trading range. She added that merging the two platforms would boost scale and operating leverage “at what we consider an opportune time in the dry bulk cycle.”
Diana said ti plans to finance the acquisition through a new debt facility and intends to sell select assets post-transaction to optimise its balance sheet. Paliou also noted the combined company would pull talent from both organisations.
Genco, headquartered in Manhattan and led by John Wobensmith, controls a fleet of more than 40 vessels from supramaxes to newcastlemaxes. Its strategic position in the US-listed bulker space has drawn previous interest from players including George Economou and Singapore’s Berge Bulk.
Shipping analysts at SEB, a Swedish investment bank, value Genco’s net asset value at $25.8 per share, implying Diana’s proposal sits at 0.8x P/NAV. While the offer is about 20% below the broker’s NAV estimate, SEB called the bid “within reason,” noting it is roughly 10% below its $23 target price. As a benchmark, Blue Northern’s 2024 takeover of Belships priced at 0.77x NAV.
Diana itself operates a fleet of nearly 40 bulk carriers across multiple size segments and a takeover of Genco would create one of the largest Greek-controlled dry bulk platforms.
