Diana Shipping announced that more than 10.58 million Genco shares, representing 28.4% of the shares not already held by the company, have been tendered in connection with the tender offer. Taking into account the more than 14% stake it already holds as Genco’s largest shareholder, the Greek company estimates that total support for its offer now exceeds 38%.
At the same time, Diana announced that it is extending the validity of the tender offer until July 11, insisting that the response from investors demonstrates significant interest in reaching an agreement between the two sides.
The CEO of Diana Shipping, Semiramis Palaiou, argued that the increased shareholder participation sends a clear message to Genco’s management to begin substantive negotiations, emphasizing that the company continues to seek a transaction that will create value for all shareholders.
Genco’s response was immediate and particularly sharp. The American company characterized Diana’s announcements as “public relations games,” noting that the public offer of $24.80 per share had already been unanimously rejected by its board of directors as undervalued.
Genco also noted that the proposal currently under consideration by its board of directors is not the initial offer of $24.80, but the improved non-binding proposal submitted on June 17. The latter maintains the cash price of $24.80 per share but adds one Diana Shipping share for every Genco share, raising the valuation to approximately $27.34 per share.
Despite the interest generated by the months-long takeover bid, several analysts believe that the public offer is largely symbolic, as the transaction cannot proceed without the removal of the shareholder protection mechanism (“poison pill”) adopted by Genco, which limits Diana’s stake to 15%.
This measure was reapproved by shareholders at the recent general meeting, while Genco’s management is attempting to bolster investor confidence by highlighting the prospect of a total dividend of up to $2.50 per share by 2026, provided that current estimates for the dry bulk market are confirmed.