• The new offer represents a 39% premium to Genco’s closing price as of late November last year, when Diana initially made the buyout offer.
• Diana Shipping said its latest offer is fully financed with no underlying conditions, and the company has $1.433 billion in fully committed financing.
• The firm has also nominated six independent candidates to Genco’s board.

Shares of Diana Shipping Inc. (DSX) sank on Wednesday after the company raised its buyout offer for Genco Shipping & Trading (GNK), as it continues to push for consolidation in the dry bulk carrier sector.

At the time of writing, DSX stock was down more than 6%.

DSX’s New Offer

Diana said it has raised its offer for Genco to $24.80 per share in cash, up from $23.50 per share in cash, representing a 39% premium to Genco’s closing price as of late November last year, when Diana Shipping initially made the buyout offer.

“Before Diana's involvement, Genco traded at an average 30% discount to NAV since 2020. As such, Genco shareholders face significant downside risk in the absence of Diana's offer. If the offer is not completed, Genco's share price could decline to approximately $18.00 per share if the stock reverts toward its historical trading,” Diana stated.

Diana Shipping said its latest offer is fully financed with no underlying conditions, and the company has $1.433 billion in fully committed financing from various leading European banks.

DSX’s Director Nominations

Additionally, Diana Shipping has nominated six independent candidates for election to Genco’s board as a contingency if the transaction fails to materialize. Notably, Diana Shipping is the largest single stakeholder in Genco, owning about 14.4% of its outstanding common stock.

“Our previous offers have each been met with silence, and we are hopeful that the Genco Board will finally sit down with us to engage in a constructive dialogue. This is the path forward that we strongly prefer, but we have also given Genco shareholders the opportunity to vote for our Board nominees – who we are confident will explore all opportunities to maximize value – and to tender their shares,” said Diana CEO Semiramis Paliou.

What Retail Thinks About DSX

On Stocktwits, retail sentiment about DSX turned ‘extremely bullish’ from ‘neutral’ over the last 24 hours.

DSX stock is up more than 69%, while GNK is up 28% so far this year, outperforming the benchmark S&P Index.

For updates and corrections, email newsroom[at]stocktwits[dot]com.