Diana Shipping has withdrawn its offer to acquire the remaining shares of Genco Shipping & Trading, after the two companies failed to agree on the terms of a potential combination.
Diana had offered US$24.80 in cash plus one Diana share for each Genco share, adjusted for Genco’s US$0.80 dividend. It withdrew the proposal after Genco sought US$27.50 in cash, US$2 in dividends, and three Diana shares per Genco share.
Diana said the demands were unrealistic and valued the package at about US$36.91 per Genco share. Diana CEO Semiramis Paliou called the proposal an “outrageous demand” and said the board was “fully misaligned with shareholders.”
Genco rejected that characterisation, saying its proposal was intended to ensure shareholders received fair value for the company’s assets. It said Diana had overstated the value of its shares and that its proposed consideration was below Genco’s estimated US$27.50 net asset value.
Genco also said shareholders should retain dividends generated before any potential deal closed. The company said it “stand(s) ready to engage further” if an agreement could be reached that delivers “full and fair value” to shareholders.
Diana remains Genco’s largest shareholder and said it will continue to scrutinise the company’s management and performance. Genco, meanwhile, plans to remain independent and continue its dividend and fleet-growth strategy.
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