Diana Shipping Inc. has submitted a letter to the board of Genco Shipping & Trading Limited proposing to acquire all outstanding shares of Genco not already owned by Diana for $20.60 per share in cash. The offer represents a 15% premium to Genco’s closing price on November 21, 2025, a 21% premium to the July 17, 2025 close, and a 23% premium to the 30‑ and 90‑day volume‑weighted average prices ending November 21.
Diana currently holds approximately 14.8% of Genco’s shares and the proposal has been unanimously approved by Diana’s Board of Directors. The offer is a non‑binding expression of interest and is subject to customary closing conditions.
Financing for the transaction will be provided through a new acquisition facility led by DNB and Nordea, with a $1.1 billion syndicated loan that will also refinance Genco’s existing debt. The facility is intended to support the purchase price and maintain liquidity for post‑transaction operations.
The combined fleet would consist of more than 77 dry‑bulk vessels, with an average age of 12.7 years and a total capacity of roughly 4.62 million deadweight tons. Diana’s current fleet of 37 vessels would be augmented by Genco’s 40‑plus ships, expanding geographic reach and providing greater charter flexibility.
Strategically, the deal is designed to strengthen Diana’s competitive position by achieving scale, improving operating leverage, and leveraging Genco’s established charter relationships. CEO Semiramis Paliou emphasized that the addition of Genco’s fleet would increase scale and flexibility, enhancing operating leverage in the dry‑bulk market at what she described as an opportune time of the cycle.
Genco’s financial performance has been weak, with a three‑year revenue growth rate of –9%, an earnings‑per‑share of –$0.17, and a net margin of –2.14%. Shares have traded below net asset value, making the cash offer attractive to shareholders seeking an exit at a premium.
In October 2025, Genco adopted a poison‑pill shareholder rights plan in response to Diana’s stake growth. The defense mechanism may complicate negotiations, but Diana’s 14.8% ownership provides leverage in discussions with Genco’s board.
Following the proposal, Genco’s shares surged 7.4% in early trading, driven by the premium and the immediate cash value offered to shareholders. The market reaction reflected investor appetite for a clean exit from a company trading below NAV.
No closing date has been announced; the parties will negotiate terms and conditions in the coming weeks. The transaction is subject to customary regulatory approvals and shareholder consent.
If completed, the combined entity would benefit from a larger, more diversified fleet, improved operating leverage, and a stronger competitive position in the dry‑bulk market, potentially enhancing shareholder value for both companies.
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