Diana's $20.60 Per Share Acquisition Offer for Genco Rejected
Written by Emily J. Thompson, Senior Investment Analyst
Source: stocktwits
- Acquisition Proposal Rejected: Diana's offer to acquire all outstanding shares of Genco at $20.60 per share in cash was rejected, despite representing a 15% premium over Genco's closing price on November 21, indicating Diana's strong acquisition intent.
- Ownership Stake: Diana currently beneficially owns approximately 14.8% of Genco's common stock, suggesting a significant influence in Genco, yet failing to elicit a positive response from the board.
- CEO's Disappointment: Diana's CEO Semiramis Paliou expressed disappointment over Genco's board rejecting the proposal and emphasized their willingness to discuss the proposal's structure and execution certainty directly, showcasing Diana's ongoing interest in the acquisition.
- Market Reaction: Despite the rejection of the acquisition proposal, shares of Diana Shipping rose in after-hours trading on Tuesday, reflecting market recognition of its acquisition intentions, even as the stock has fallen 5% over the past year.
Analyst Views on DSX
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.
