Diana Shipping has launched a $4.2 billion tender offer for Genco Shipping & Trading at $23.50 per share in cash. The Diana Shipping Genco bid expires on 2 June 2026 after the company’s board rejected the offer as substantially undervalued.
How Diana Shipping is taking the bid to shareholders
Diana Shipping has bypassed Genco’s board after what it described as a five-month refusal to engage on earlier proposals. The company first approached Genco in November 2025 with a $20.60 per share offer. It raised the bid to $23.50 in March before launching the formal tender offer.
CEO Semiramis Paliou said the move gives shareholders a direct opportunity to realize immediate value. The offer is fully financed and backed by $1.433 billion in committed funding from major banks. It is not subject to financing conditions.
Offer terms and 31% premium
Diana said the proposal represents a 31% premium to Genco’s undisturbed share price and values the company at approximately 1.0x net asset value. The company argues the offer removes the historical discount at which Genco shares have traded. It also provides immediate liquidity compared with long-term dividend returns.
As part of the transaction, Diana has agreed to sell 16 vessels to Star Bulk Carriers for $470.5 million after completion. The tender offer expires on 2 June 2026, unless extended.
Why did Genco reject the Diana Shipping bid?
Genco’s board unanimously rejected the $23.50 per share offer as inadequate. The proposal substantially undervalues the company and falls below the value of its fleet, according to Genco. It also does not provide an adequate control premium. Analyst estimates place Genco’s NAV between $25.80 and $26.50 per share, above Diana’s offer level.
Genco confirmed it is reviewing the unsolicited tender bid but reiterated its earlier rejection. The board will issue a formal recommendation to shareholders within 10 business days. It advised investors not to take action at this time.
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Director nominations and governance battle
Diana has nominated six independent directors to Genco’s board, signaling a broader push to influence the company’s strategic direction. It also criticized delays in scheduling Genco’s 2026 annual meeting, suggesting shareholders are being denied a timely vote.
The director slate adds pressure on Genco’s existing board, which faces a contested election alongside the tender offer. Shareholder support will likely determine whether Diana can install its nominees and force engagement on the bid. The dispute has moved into open conflict, with both sides making their positions clear to investors ahead of the June deadline.
What happens next in the takeover process
The offer remains subject to several conditions before it can complete. It include majority shareholder participation, approval of a merger agreement, removal or bypass of Genco’s shareholder rights plan, and regulatory approvals. If successful, Diana plans a second step merger to ensure all shareholders receive the same cash consideration.