Diana Shipping announces cash bid to take over Genco

Genco’s shares are trading below net asset value, as is the case across the dry bulk space. The Diana offer is roughly in line with Genco’s NAV, 1% below the estimates of two analysts.

Clarksons Securities estimates that Genco’s NAV is $20.80 per share. Genco’s share price on Friday was 86% of NAV, according to Clarksons, in line with the overall NAV discount of the dry bulk segment.

Jefferies puts Genco’s NAV at $22.90 per share.

When CMB.Tech purchased John Fredriksen’s stake in Golden Ocean in March, it paid a 14% premium to Golden Ocean’s NAV, based on Clarkson’s NAV calculations.

Following its initial purchase of Genco shares in early July, Diana increased its holdings to 9.9% on July 31 and to 14.9% on September 30.

Genco announced a one-year poison-pill shareholder rights programme on October 1, effective if any entity owned 15%, just above Diana’s stake.

It amended the poison pill on November 10, lowering the bar to 10% for an active investor excluding Diana, after Genco concluded that Diana “could seek to transfer its position in whole or in part”.