Diana Shipping raises its offer for Genco Shipping, backed by financing and a vessel acquisition agreement with Star Bulk Carriers.
Diana Shipping has increased its unsolicited offer to acquire Genco Shipping & Trading, as reported by the Wall Street Journal.
The company announced that Star Bulk Carriers has agreed to purchase 16 of Genco's vessels if the deal is finalized.
Diana, which currently holds approximately 14.8 percent of Genco's shares, stated it would pay US$23.50 per share for the remaining shares. This offer represents a 31 percent premium over Genco's closing price on November 21, the last trading day before Diana first made its approach.
The bid is supported by US$1.43 billion in committed financing from banks including DNB Carnegie, Nordea, BNP Paribas, and Deutsche Bank, according to Diana. The proposed price also aligns with Genco's net asset value, based on an estimate by Clarksons Securities.
Star Bulk has agreed to acquire 16 Genco vessels for $470.5 million if the takeover is successful, Diana added. This move highlights the ongoing consolidation in the dry bulk shipping sector as companies strive for greater scale and stronger market positions.
