Diana Shipping has extended its offer to acquire Genco Shipping & Trading until July 24, maintaining its efforts to acquire the company after receiving only a slight increase in shareholder support.
According to information from the Greek owner of the bulk carrier fleet, 11.08 million shares of Genco were tendered by the deadline of July 10, representing 29.7% of the total shares it does not yet own.
In comparison, 10.58 million shares, or 28.4% of the shares not under Diana's control, were tendered by June 26.
Diana already owns over 14% of Genco's shares and is the largest shareholder of the New York-registered company.
However, the latest data leaves the company without the necessary support to gain control through the tender process.
The official offer remains at $24.80 per share. Diana has also made a separate optional proposal directly to Genco's board of directors, which implies a price of $27.34 per share, consisting of $24.80 in cash and one share of Diana valued at $2.54.
Genco emphasizes that the stock component is not part of the tender offer and urges shareholders not to participate in the $24.80 offer. Previously, the board of directors rejected the cash offer, claiming it undervalued the company and did not include an adequate control premium.
Semiramis Paliou, CEO of Diana, noted that for the deal to be completed, both companies and their advisors would need to begin negotiations.
Diana reported that the offer is supported by $1.412 billion in financing from six international banks and has no conditions related to financing.
The battle for acquisition has been ongoing for several months, with Diana repeatedly raising its bid and reaching out directly to shareholders after failing to gain support from Genco's board of directors.
Genco shareholders provided the incumbent board with a decisive victory at the annual meeting on June 18, re-electing all six directors. Genco reported that nearly 90% of the voting shares, excluding Diana's stake, supported each of its candidates.
Diana has also reached an agreement with compatriot Star Bulk Carriers to acquire 16 Genco vessels for $470.5 million in the event of a successful deal completion.
