Genco Shipping & Trading Limited’s board rejected Diana Shipping Inc.’s all‑cash offer of $20.60 per share, a 15% premium to Genco’s November 21 2025 closing price. The decision was announced on January 13 2026, after a unanimous vote by the board and its independent directors’ committee.
Genco said the bid undervalued the company, citing a net asset value of roughly $26.9 per share and a 10‑year high of $26.93. The offer also fell short of the $20.84 figure that Diana uses when adjusting for dividends, underscoring a valuation gap that Genco’s management deemed material.
The board highlighted execution risk, noting Diana’s high debt‑to‑equity ratio and the absence of a firm financing commitment. Diana’s own statement references a “highly confident” financing letter from DNB Bank and Nordea Bank for up to $1.102 billion, but Genco viewed the lack of a binding commitment as a significant hurdle.
Genco’s strategy, described by Chairman and CEO John C. Wobensmith, focuses on sizeable quarterly dividends, low leverage, and opportunistic fleet renewal. The company has paid $7.065 per share in dividends over the past six years and invested $347 million in high‑specification vessels, including two Newcastlemax units in November 2025.
In a letter dated January 8 2026, Genco proposed a counter‑transaction in which it would acquire Diana. The proposal reflects Genco’s confidence that its equity currency is stronger and that a deal in its own favor would deliver superior long‑term shareholder returns.
Diana Shipping owns about 14.8% of Genco’s outstanding shares. The rejection leaves the two companies as separate entities, but the board’s statement signals that Genco remains open to future strategic combinations that align with its low‑leverage, high‑value framework.
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