Star Bulk to Acquire 16 Vessels from Diana Shipping for $470.5 Million

Written by Emily J. Thompson, Senior Investment Analyst

Source: Globenewswire

Updated: 7 hours ago

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Source: Globenewswire

Acquisition Agreement: Star Bulk Carriers Corp. has entered into a conditional Sale and Purchase Agreement with Diana Shipping Inc. to acquire 16 vessels for $470.5 million in cash, significantly enhancing Star Bulk's fleet size and market competitiveness.
Vessel Details: The acquisition includes 1 Newcastlemax, 6 Capesize, 7 Ultramax, and 2 Supramax vessels, totaling a carrying capacity of 1.8 million dwt with an average age of 11.4 years, expected to generate substantial EBITDA and operating cash flow for the company.
Funding Sources: Star Bulk plans to fund the purchase price through existing cash resources, reserved funds from previous vessel sales, and new debt financing, with a current cash balance of $501.9 million and 27 unlevered ships valued at $628 million.
Strategic Implications: CEO Petros Pappas stated that this acquisition will further enhance Star Bulk's scale and earnings power while supporting dividend growth and deleveraging, reflecting the company's belief in the value of consolidation in the dry bulk sector.

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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.

Diana Shipping Raises Offer to Acquire Genco Shipping

4 hours agoBenzinga

Increased Acquisition Offer: Diana Shipping has raised its cash offer for Genco to $23.50 per share, representing a 31% premium over the closing price before its initial bid, demonstrating the company's commitment to the acquisition despite Genco's board rejecting the previous $20.60 offer.
Vessel Acquisition Details: Star Bulk's acquisition includes 16 vessels, comprising one Newcastlemax, six Capesize, seven Ultramax, and two Supramax ships, with a total carrying capacity of 1.8 million dwt and an average age of 11.4 years, which will significantly enhance Star Bulk's market position.
Strategic Importance of Acquisition: Diana's CEO emphasized the financial and strategic merits of the acquisition, urging Genco's board to engage in good-faith negotiations to deliver value to shareholders, indicating confidence in future growth prospects.
Market Reaction: As of Friday, Diana Shipping shares fell 4.15% to $2.42, Star Bulk Carriers declined 3.17% to $23.84, and Genco Shipping slipped 4.27% to $22.17, reflecting market caution regarding the acquisition news.

Diana Shipping Raises Offer to Acquire Genco Shipping

5 hours agoseekingalpha

Increased Acquisition Offer: Diana Shipping has raised its offer to acquire Genco Shipping to $23.50 per share, representing a 31% premium over Genco's closing price on November 21, indicating a reassessment of Genco's value, despite Genco previously rejecting the $20.60 offer as undervaluing the company.
Strong Financing Support: Diana stated that the increased proposal is backed by $1.43 billion in fully committed financing from several international banks, providing robust financial backing for its acquisition plans and enhancing market confidence in its purchasing power.
Star Bulk's Involvement: Star Bulk Carriers has agreed to acquire 16 vessels from Genco for $470.5 million upon successful completion of the acquisition, with these vessels having a total carrying capacity of 1.8 million dwt and an average age of 11.4 years, reflecting recognition of Genco's assets while adding complexity to Diana's acquisition.
Negative Market Reaction: Despite the acquisition proposal generating interest, the stock prices of Diana Shipping, Genco Shipping, and Star Bulk Carriers all fell, declining by 4.9%, 6%, and 4.2% respectively, reflecting market uncertainty regarding the acquisition's prospects and investor caution.