Genco Shipping & Trading has confirmed it received a non-binding takeover proposal from Diana Shipping Inc.
Diana offered to buy all outstanding Genco shares it does not already own for $20.60 per share in cash. Diana currently holds about 14.8% of Genco’s common stock.
Genco’s board said it will review the proposal with its financial and legal advisers. The company stressed that shareholders do not need to take any action at this stage.
The proposal is non-binding, and Genco said there is no assurance that a final offer will follow or that a deal will be completed. The board has not made any decision and has given no timetable for a response.
Diana has not provided details on financing or conditions attached to the proposal.
Genco, one of the largest U.S.-based dry bulk shipowners, transports commodities such as iron ore, coal, grain, steel products, and cement worldwide. Its fleet includes Newcastlemax, Capesize, Ultramax, and Supramax vessels.
The company operates 45 vessels with a total capacity of about 5 million deadweight tons. The average age of the fleet is 12.5 years.
Genco said it will provide updates only if required by law.
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