The Genco Shipping & Trading board on Tuesday unanimously rejected Diana Shipping’s revised unsolicited buyout offer of $24.80 per share, saying it continues to undervalue the company and its assets. The decision was reached after a thorough review with external financial and legal advisers, who determined the offer’s value fell below Genco’s net asset value and did not include a control premium, Genco said in a statement.
Diana Shipping last week said it would purchase all of Genco’s outstanding shares for $24.80 apiece, up from its previous bid of $23.50. The price represents a 39% premium to Genco’s closing price on Nov. 21, the last trading day before Diana’s initial acquisition offer, Diana said. The company also alleged at the time that Genco had been unwilling to meet or engage in a constructive dialogue regarding a deal.
Genco rejected that claim Tuesday, saying it remains willing to meet with Diana “if and when they submit an offer that adequately compensates shareholders for the full underlying value of Genco’s assets.”
“Genco has engaged with Diana for two years, beginning in June 2024 when our CEO proactively reached out to them to explore a potential business combination,” the company said. “Over this time, Diana has displayed a pattern of attempting to take control of Genco without paying full and fair value.”
Genco also said that Diana’s ongoing proxy contest to replace its board is consistent with that pattern. The company added that it is operating from a position of strength and that Diana’s recent offer was not in shareholders’ best interest.
The rejection marks the latest development in a two-year standoff between the two dry-bulk shipping companies, with Diana escalating its pursuit through both revised offers and a board challenge.