Genco Shipping Rejects Diana Shipping’s Buyout Proposal
A significant conflict is unfolding in the U.S. dry bulk shipping sector as Genco Shipping & Trading has officially turned down a cash buyout offer from its Greek counterpart, Diana Shipping. The proposal, made in November 2025, aimed to acquire all Genco shares not already owned by Diana at a price of $20.60 per share. Currently, Diana holds approximately 14.8% of Genco’s shares.
Genco’s board, following the advice of independent directors, unanimously determined that the offer undervalued the company. They cited substantial execution risks and a lack of committed financing as critical issues. Genco emphasized that the proposal did not adequately reflect the value of its modern fleet, robust commercial platform, and strong balance sheet. The company also pointed out that the offer fell below its net asset value amid rising dry bulk asset prices.
In an effort to engage Diana, Genco suggested an alternative structure where it would acquire Diana instead, using a combination of cash and shares. Genco argued that this approach would better represent their relative valuations and provide Diana shareholders with exposure to Genco’s stronger equity currency and lower leverage model. However, Diana declined to consider this proposal.
Diana Shipping’s Response and Financing Assurance
In response to Genco’s rejection, Diana Shipping expressed disappointment, accusing Genco’s board of failing to engage after weeks of silence. Diana reiterated that its all-cash offer provides immediate and certain value, highlighting that it includes premiums of up to 23% over Genco’s recent volume-weighted average share price.
Diana also stated that its proposal is backed by a “highly confident” financing letter from DNB and Nordea, which guarantees over $1.1 billion in debt funding to cover acquisition, refinancing, and transaction costs. The company dismissed Genco’s counterproposal as lacking essential financial terms and indicated that it would continue to explore options to advance its bid.
Genco, led by CEO John Wobensmith, operates a fleet of over 40 bulk carriers, ranging from supramaxes to Newcastlemaxes, and is known for its low leverage and consistent dividends. Diana operates a similarly sized fleet, and a successful acquisition would create one of the largest Greek-controlled dry bulk platforms in the public markets.
Market Analysis and Future Implications
Shipping analysts at the Swedish investment bank SEB have weighed in on the situation, noting that Genco’s rejection aligns with the relative valuations of the two companies. Following a recent increase in asset values, SEB estimates Genco’s net asset value at $26.9 per share, suggesting that the board’s decision to decline the $20.60-per-share offer is not surprising. In contrast, SEB estimates that Diana is trading at approximately 0.33 times its net asset value, significantly lower than Genco’s valuation.
Given this context, analysts believe that a transaction led by Genco could be more advantageous, offering immediate valuation benefits for Diana shareholders while preserving value for Genco investors. As both companies remain firm in their positions, the potential for consolidation in the dry bulk sector is acknowledged, but agreement on price, structure, and control appears distant.
