Diana Shipping's Acquisition Proposal Rejected by Genco Shipping, Genco Proposes to Acquire Diana Instead
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Acquisition Proposal Rejected: Diana Shipping's proposal to acquire Genco Shipping at $20.60 per share was flatly rejected, despite representing a 15% premium over Genco's closing price on November 21, indicating Diana's strong intent and confidence in future growth prospects.
- Complex Equity Relationship: Diana currently holds approximately 14.8% of Genco's shares; however, Genco's board failed to engage in any substantive discussions with Diana over six weeks, reflecting significant strategic divergence between the two companies.
- Strong Financing Support: Diana stated that its acquisition proposal is backed by up to $1.1 billion in financing from DNB Bank and Nordea Bank, providing a robust financial foundation for its acquisition plans and underscoring the seriousness of its intentions.
- Genco's Counter Proposal: In response, Genco suggested it might acquire Diana but did not provide any specific pricing or financial terms, which Diana views as a tactic to downplay its proposal, failing to demonstrate a genuine acquisition interest.
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About DSX
Diana Shipping Inc. is a Greece-based global provider of shipping transportation services. The Company specializes in the ownership and bareboat charter-in of dry bulk vessels. The Company's operating fleet consists of 40 dry bulk vessels, including 4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax, and 6 Ultramax. Its fleet combined carrying capacity is approximately 4.7 million deadweight tonnage (dwt) with a weighted average age of 10.16 years. The Company's fleet is managed by its wholly-owned subsidiary Diana Shipping Services S.A. and its established 50/50 joint venture with Wilhelmsen Ship Management named Diana Wilhelmsen Management Limited.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
