Diana raises possibility of lowering Genco takeover offer
Key Takeaways
- •Diana’s implied $27.34-per-share offer consists of $24.80 in cash and one Diana share worth $2.54.
- •Diana said Genco’s fleet value fell 3.4% to $1.433 billion on July 28, or about $50 million below its early-June peak.
- •Diana argued that Genco changed its valuation method from VesselsValue to averages from two shipbrokers in its first-quarter 2026 results.
- •Genco said broker valuations obtained this month showed vessel prices were still rising and that any deal must reflect full net asset value plus a control premium.
- •Diana’s $24.80-per-share cash tender expired on July 24 and was withdrawn after about 31.6% of unaffiliated shares were tendered.
Diana Shipping has raised the prospect of cutting its $27.34-per-share takeover proposal for Genco Shipping & Trading after saying the U.S.-listed owner’s fleet has lost $50 million in value since early June.
The Athens-based owner cited VesselsValue data showing Genco’s 43-ship fleet at $1.433 billion on July 28, down 3.4% from a peak of $1.483 billion in early June. Diana said weaker conditions in the dry bulk market were reducing the target’s net asset value while Genco’s board continued to prolong takeover discussions.
The offer still stands at an implied $27.34 per share, made up of $24.80 in cash and one Diana share valued at $2.54. Diana said any further material deterioration could prompt it to reassess the proposal, underscoring how vessel valuations remain central to the negotiations.
The latest criticism from Diana centers on the valuation method used by Genco. Diana said the New York-listed company had used VesselsValue in its investor presentations for more than five years before switching to an average of estimates from two unnamed shipbrokers in its first-quarter 2026 results.
According to Diana, that alternative approach resulted in a net asset value about $2 per share higher than the VesselsValue-based calculation used to price its bid. Genco’s first-quarter presentation confirms that its loan-to-value figures were based on valuations provided by two independent broking firms.
Genco rejected Diana’s account. In a statement on Monday, the company said broker valuations obtained this month showed vessel prices were still rising and said any transaction would need to reflect full net asset value and include a premium for control.
The John Wobensmith-led company operates 43 newcastlemax, capesize, ultramax and supramax bulkers with a combined capacity of about 4.94 million dwt and an average age of 12.6 years.
Diana’s formal $24.80-per-share cash tender expired on July 24, with about 31.6% of the Genco shares not already held by Diana tendered. The tender has now been withdrawn, but the higher cash-and-stock proposal remains under review by Genco’s board. Diana owns about 14.4% of the company and remains its largest shareholder.