Genco Shipping & Trading Limited, the largest U.S. headquartered drybulk shipowner focused on the global transportation of commodities, today issued the following statement regarding the expiration of the tender offer of Diana Shipping Inc.:
Genco is executing its Comprehensive Value Strategy, which is delivering superior returns to shareholders in a strengthening drybulk market. We look forward to updating the market on our second quarter 2026 results on August 5, 2026.
Our Board of Directors has been clear: We are committed to maximizing value for shareholders. Any offer needs to adequately compensate shareholders for the full underlying value of our assets (NAV) and provide an appropriate control premium to NAV that reflects the value of Genco’s sizeable and industry-leading platform in a rising market. Moreover, despite Diana’s attempts to once again mislead the market in its press release, Genco’s fleet value has not declined. Independent third-party broker valuations obtained by the Company this month show vessel values are continuing to rise, which together with strong fleet-wide cash flow generation is driving appreciation of Genco’s NAV.
The Board is continuing its thorough review of Diana’s non-binding indicative proposal to acquire all outstanding common shares of Genco not already owned by Diana for consideration consisting of $24.80 per share in cash and one Diana share. As part of that review, our advisors have engaged with Diana’s advisors on multiple occasions to discuss their proposal, including its price, structure and terms. Genco will continue to engage in good faith discussions with Diana with the goal of determining whether a transaction that fully and fairly compensates Genco shareholders is achievable.
Diana continues to ascribe $2.54 per share value to the stock consideration in its offer. We encourage shareholders to understand:
- Diana’s closing stock price on June 16, the day prior to announcing its revised proposal, was $2.30, and Diana’s closing stock price on July 24 was $2.25;
- The proposed new share issuance in connection with the transaction may result in substantial dilution of Diana’s current outstanding shares that could lead to a materially lower share price, reducing the consideration received by Genco shareholders;
- Diana’s proposed subsequent sale of 16 Genco vessels to Star Bulk at below market prices could further negatively impact the value of Diana shares; and
- Given the high voting preferred shares held by insiders at Diana, the common share consideration offers extremely limited shareholder rights and therefore poses significant risks to Genco shareholders.
Our Board will continue taking actions that are in the best interests of all Genco shareholders as we seek to deliver compelling and growing dividends and strong shareholder returns.
Jefferies LLC is acting as financial advisor to Genco and Herbert Smith Freehills Kramer (US) LLP and Sidley Austin LLP are serving as legal counsel to Genco. Morgan Stanley & Co. LLC is acting as special advisor to the Board of Directors.