Overview
- Genco’s board, following a recommendation from independent directors, unanimously turned down Diana Shipping’s non-binding proposal to buy the remaining shares for $20.60 each in cash.
- The board said the bid sits below Genco’s net asset value and even under its 10-year high stock price of $26.93, and it flagged a lack of committed financing and execution risks tied to leverage.
- Genco said it sought to discuss an alternative in which Genco would acquire Diana using cash and equity, while Diana countered that Genco offered no evaluable financial terms for such a deal.
- Diana, which owns about 14.8% of Genco, reiterated that its offer carries stated premiums and is supported by financing letters from DNB Bank and Nordea for up to $1.102 billion.
- Diana said it will file Genco’s rejection letter with the SEC as an exhibit to its Schedule 13D, and its board is evaluating options to advance the proposal.