Diana Shipping reaches near 10% stake in Genco
Diana Shipping Boosts Stake in Genco Shipping
In a significant move within the shipping industry, Greek dry bulk owner Diana Shipping has expanded its investment in Genco Shipping & Trading. According to a recent filing with the U.S. Securities and Exchange Commission, Diana has acquired approximately 4.29 million shares of Genco, raising its stake to 9.99% for a total investment of around $61.7 million. This acquisition follows Diana’s earlier purchase of a 7.7% stake in July, solidifying its position as one of Genco’s largest shareholders.
Strategic Investment Without Activism
Diana Shipping, led by Semiramis Paliou, has clarified that this recent acquisition was made purely for investment purposes, utilizing internal funds. Notably, the company has opted to remain just below the 10% ownership threshold, which would trigger additional regulatory disclosures. This strategic decision allows Diana to maintain a significant stake in Genco without engaging in board nominations or activist campaigns.
The move comes amid a flurry of activity involving Genco’s shares. Earlier in 2023, notable figures in the shipping sector, including Greek magnate George Economou, acquired stakes in Genco, with Economou initially taking a 5.4% position before exiting with a profit. Additionally, Singapore-based Berge Bulk invested approximately $42 million for a 7.3% stake in Genco, increasing it to 9.7% by July. Diana Shipping’s latest investment underscores the growing interest in Genco Shipping & Trading, which operates a diverse fleet of over 40 vessels, ranging from supramaxes to capesizes.
