Diana Shipping Inc. announced on Friday that it has raised its cash offer to acquire Genco Shipping & Trading to $23.50 per share. The company framed the revised proposal as part of a coordinated transaction that involves Star Bulk Carriers Corp. acquiring a portion of Genco's fleet.
Under the terms disclosed, Star Bulk has agreed to purchase 16 Genco vessels for a total of $470.5 million. Diana Shipping said the sale of that subset of vessels to Star Bulk is incorporated into the overall deal structure.
To back the acquisition, Diana Shipping reported it has obtained a fully underwritten financing commitment totaling $1.433 billion. The company described that financing as intended to support the completion of the proposed acquisition of Genco.
The revised $23.50-per-share bid represents Diana Shipping's latest effort to secure control of Genco Shipping & Trading. The transaction, as outlined by Diana Shipping, would combine two dry bulk shipping companies while allowing Star Bulk to take ownership of a portion of Genco's fleet through the agreed vessel purchase.
Summary of the proposal
- Diana Shipping increased its all-cash offer for Genco to $23.50 per share.
- Star Bulk Carriers will acquire 16 Genco vessels for $470.5 million as part of the transaction.
- Diana Shipping has a fully underwritten financing commitment of $1.433 billion to support the deal.
The companies have presented the components of the transaction as mutually linked: an elevated cash bid for all outstanding shares of Genco, a carve-out purchase of a specified set of vessels by Star Bulk, and committed financing to facilitate closing. Details beyond these elements were not provided in the announcement.
Market participants and stakeholders in the dry bulk shipping sector and related capital markets will be watching for further disclosures and any subsequent steps by the parties involved. At present, the public statements are limited to the revised offer amount, the vessel purchase agreement for 16 ships at $470.5 million, and the $1.433 billion financing commitment.