Genco Shipping & Trading Ltd's board of directors has unanimously rejected a revised unsolicited acquisition proposal from Diana Shipping Inc., stating the offer still significantly undervalues the company and its assets.
The board of Genco Shipping & Trading Ltd (NYSE: GNK) reached its decision after a thorough review of the proposal alongside its external financial and legal advisors. The company announced the determination that the offer price is below Genco's net asset value and does not include a control premium.
Diana Shipping Inc. (NYSE: DSX) disclosed last week its intention to acquire all outstanding shares of Genco for $24.80 per share, an increase from its initial offer of $23.50. Diana noted this price represents a 39% premium to Genco's closing share price on November 21, the last trading day before its initial proposal.
At that time, Diana also accused Genco of being unwilling to engage in substantive discussions regarding a potential combination.
Genco refuted this claim again on Tuesday, stating it is prepared to meet and negotiate only if Diana provides a proposal that fully reflects the intrinsic value of Genco's assets and serves the best interests of its shareholders.
"Since June 2024, our Chief Executive Officer has proactively engaged with Diana regarding a potential transaction, a process that has spanned two years," Genco stated. "Throughout these discussions, Diana has consistently sought to gain control of the company without paying full and fair value."
Genco noted that Diana's current proxy contest to replace its board is a continuation of this approach. The company emphasized its strong operational and financial fundamentals and asserted that Diana's current proposal is not in the best interests of all Genco shareholders.
Comments