Diana Raises Offer for Genco and Agrees to Sell 16 Ships to Star Bulk
Diana Shipping is back with a sweetened offer to acquire fellow bulk shipper Genco Shipping & Trading, both increasing the cash dollar amount and announcing it has partnered with Star Bulk Carriers. Under the new plan, the all-cash offer is reported to be a 31 percent premium to the share price from last year, backed by a deep list of major financial institutions, and set to carve up Genco’s fleet with Star Bulk.
Highlighting what it said was considered to be an opportune time of the cycle for the dry bulk sector, Diana launched its plan for the merger in November 2025 with an all-cash offer of $20.60 per share. It reported that it already had acquired on the open market more than 14 percent of Genco’s shares. It highlighted the advantages of a fleet that combined could reach 80 vessels and a total of 9 million dwt.
The new offer transmitted to Genco and announced on March 6 is for $23.50 per share. They reported that they have formed a partnership with Star Bulk, which would see Genco’s fleet of 45 vessels (after a pending acquisition) and 5 million dwt, carved up. Star Bulk has agreed to acquire 16 of Genco’s vessels for $470.5 million after Diana completes the acquisition of Genco.
Addressing the other key question regarding the financing for the acquisition, Diana now reports its offer is supported by $1.433 billion of fully committed financing. It said the financing has been arranged by DNB Carnegie and Nordea, with participation from BNP Paribas, Standard Chartered, Deutsche Bank, and Danske Bank.
Diana is calling for Genco’s board to engage “promptly and in good faith” to negotiate a definitive agreement. Diana has repeatedly asserted that Genco’s board has refused to engage constructively.
The new terms came about two months after Diana announced it was also starting a proxy battle for control of the board. It put forth a new slate of directors in January, calling on the shareholders to support its board nominees. The slate of directors will come up for a vote at the next annual shareholders meeting, but Diana is also increasing the pressure with the new offer.
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For its part, Genco has repeatedly said Diana was undervaluing the company. It also questioned the financing, suggesting that if anything, Genco had the stronger balance sheet and should be buying Diana.
Genco issues a brief statement today acknowledging it received a “revised, non-binding indicative proposal” from Diana. The board says it thoroughly reviewed the prior proposal, and it will review the new indicative proposal. It said it would not comment further until it completes its review.
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