Diana Shipping Inc. has increased its indicative proposal to acquire all outstanding shares of Genco Shipping & Trading Limited that it does not already own, offering $23.50 per share in cash. The new price represents a 31% premium to Genco’s undisturbed closing price of $20.60 on November 21 2025, and Diana currently holds 14.8% of Genco’s common stock.
The revised offer follows Diana’s initial $20.60 per share proposal disclosed on January 13 2026, which Genco’s board rejected as undervalued. The new proposal is backed by $1.433 billion in fully committed financing from DNB Carnegie and Nordea, and includes a definitive agreement with Star Bulk Carriers to acquire 16 Genco vessels for $470.5 million upon completion of the transaction.
Diana cites the financial and strategic merits of the deal, arguing that the combined fleet and commercial platform will generate synergies and improve scale. The partnership with Star Bulk allows a structured unbundling of Genco’s assets, potentially unlocking value for shareholders while providing a clear exit path for the vessel portfolio.
Genco’s financial backdrop shows a net loss of $4.4 million for the full year 2025, a sharp reversal from a $76.4 million profit in 2024. Revenue fell due to lower freight rates, a smaller fleet, and increased dry‑docking days. Despite the loss, Genco declared a strong Q4 2025 dividend, its highest since Q4 2022.
Diana Shipping reported a net income of $3.1 million in Q4 2025, down from $9.7 million in Q4 2024, driven by vessel sales and higher dry‑docking costs. The company remains focused on expanding its fleet and market presence.
On March 6 2026, Genco, Diana, and Star Bulk shares fell 5.31%, 6.52%, and 4.58% respectively, reflecting investor concern over valuation, overcapacity in the shipping industry, and the potential impact of the deal structure on Genco’s asset base.
Genco’s board will review the proposal with external advisors and decide on the best course for shareholders. Diana has nominated a slate of independent directors for election at Genco’s upcoming annual meeting, indicating a potential proxy contest. The final outcome will depend on board deliberations and shareholder votes.
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