Diana Shipping Sells $32m of Genco Stock After Takeover Bid Collapses
Holding cut from 14.4% to 11.62% across two disposals at an average of $26.71 a share
Diana Shipping has started cutting its exposure to Genco Shipping & Trading following the collapse of its nine-month takeover campaign, selling 1.2m shares for just over $32m.
The bulker owner led by Semiramis Paliou sold 450,000 Genco shares on 21 August and another 750,000 on 24 August, disclosed in an amended Schedule 13D filed with the US Securities and Exchange Commission. The transactions brought in about $32.06m at an average price of roughly $26.71 per share.
The disposals reduced Diana's position from 6.26m shares, or 14.4%, to just over 5.06m shares representing 11.62% of Genco. That leaves Diana a substantial minority holder rather than a controlling one, and removes the block that had underpinned its campaign for board influence.
The takeover attempt unravelled in two steps. Star Bulk walked away from the conditional vessel deal on 10 August, and Diana pulled its takeover offer four days later after the two sides failed to bridge a wide valuation gap. Diana said Genco's counterproposal amounted to about $36.91 per share, while Genco later argued that Diana had overstated the value of its framework.
The pricing of the disposals sets that dispute in context. Shares sold at an average $26.71 against a counterproposal valued near $36.91 illustrate the distance between the two positions, and the difference between a control premium and a market price for a minority stake in a listed bulk carrier owner.
Despite the sales, Diana remains one of Genco's largest investors and retains sizeable exposure to a company that has continued to expand since the takeover battle began. The remaining 11.62% keeps Diana in a position to influence the register without carrying the cost of a renewed offer, and the filing gives no indication of whether further disposals are planned.
