Splash247: Diana and Star Bulk mount new takeover push for Genco

Greek bulker owner Diana Shipping has raised the stakes in its takeover attempt for US-based Genco Shipping & Trading, increasing its all-cash offer while bringing in fellow dry bulk heavyweight Star Bulk Carriers as a key partner in the deal.

The New York-listed owner said it has lifted its bid to $23.50 per share for the Genco stock it does not already own, up from the $20.60 per share proposal submitted in November 2025. Diana currently holds about 14.8% of Genco.

The revised offer represents a 31% premium to Genco’s share price before the initial proposal was made public.

To back the bid, Diana has lined up $1.433bn in fully committed financing arranged by DNB Carnegie and Nordea, with support from BNP Paribas, Standard Chartered, Deutsche Bank and Danske Bank.A key part of the structure involves Star Bulk agreeing to acquire 16 vessels from Diana once the takeover closes. The ships — including one newcastlemax, six capesizes, seven ultramaxes and two supramaxes — would be sold in an en bloc deal worth $470.5m.

If completed, the ships would add around 1.8m dwt of capacity to Star Bulk’s fleet and push its total to roughly 157 vessels on a fully delivered basis.

Diana said the financing package and the Star Bulk vessel sale provide a clear route to completing the acquisition and refinancing Genco’s existing debt.

Chief executive Semiramis Paliou (pictured) noted the improved bid reflects the company’s continued belief in the strategic logic of combining the fleets and urged Genco’s board to open negotiations.

The Athens-based owner has also called on Genco shareholders to press the board to engage, arguing the offer provides certain value at a premium.

Genco said its board will review the terms with the help of external advisers. The company rejected Diana’s original bid, saying it significantly undervalued the company. This resulted in Diana moving to nominate an entirely new slate of directors at Genco, escalating a standoff over consolidation and control.

In a note to investors, shipping analysts at Swedish investment bank SEB said the revised proposal still undervalues Genco. The bank estimates the company’s net asset value at about $1.21bn, or $27.8 per share, meaning the $23.50 offer implies a price-to-NAV ratio of roughly 0.85x. SEB added that the revised bid is only about 1% above Genco’s previous closing price and around 15% below its estimated NAV, arguing the offer does not reflect the full underlying value of the company despite the firm dry bulk market outlook.