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Diana Shipping · Dry Bulk Shipping · Genco Shipping · Takeover Bid
Genco Shipping & Trading Limited (GNK) unanimously rejected Diana Shipping Inc.'s revised takeover proposal of $23.50 per share in cash, citing undervaluation and significant execution risks.
Genco's board determined the offer failed to provide an appropriate premium to its net asset value, noting Diana Shipping relied on the lowest analyst NAV estimate instead of Genco's mean analyst NAV estimate of $25.1 per share, which is above the offer amid rising asset values. The board also expressed concerns regarding Diana Shipping's proposed financing, highlighting a discrepancy between announced funding and committed amounts, and plans to sell certain vessels, which Genco believes could diminish shareholder value.
Genco Shipping & Trading Limited remains open to further engagement with Diana Shipping Inc. if a subsequent offer more accurately reflects its intrinsic value and future growth prospects.
Genco shares closed at $22.77 on Wednesday, up 3.45%, prior to the Thursday announcement.
