Genco Shipping & Trading Limited has firmly pushed back on takeover interest from Diana Shipping Inc., with its board unanimously rejecting a non-binding $20.60-per-share cash proposal that it says "significantly undervalues" the
Genco Shipping & Trading Limited has firmly pushed back on takeover interest from Diana Shipping Inc., with its board unanimously rejecting a non-binding $20.60-per-share cash proposal that it says "significantly undervalues" the company and carries unacceptable execution risk.
In a statement released January 13, Genco Shipping & Trading Limited said its board, acting on the recommendation of an independent committee and advised by external financial and legal counsel, concluded that Diana’s approach was “not in the best interest of shareholders.” The board cited both valuation and structural concerns, including the lack of committed financing and Diana’s higher leverage profile.
The proposal came from Diana Shipping Inc., which already holds a stake in Genco and sought to acquire the remaining shares it does not own. Genco said the indicative offer failed to reflect the intrinsic value of its business, fleet and balance sheet, and did not include an appropriate premium for control.
According to Genco, the offer price sits below the company’s net asset value at a time when drybulk asset prices are rising, and well below its 10-year high share price of $26.93. The board also emphasized Genco’s track record of durable cash flow generation and capital returns, noting that
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