Star Bulk will now no longer be taking over the 16 Genco vessels as planned. According to the company, this will not affect the planned takeover of Genco by Diana Shipping or its financing.
The Greek bulk shipping companies Diana Shipping and Star Bulk Carriers have mutually terminated their agreement to purchase 16 Genco vessels. According to the companies, the termination took place at Star Bulk’s request.
The sale of the vessels was to take place following the completion of Diana’s planned takeover of Genco Shipping & Trading. Star Bulk justified its withdrawal on the grounds that Genco’s board of directors had not yet negotiated Diana’s takeover bid.
Diana remains committed to the planned takeover. The offer applies to all outstanding Genco shares not already held by the shipping company. It comprises a cash payment of $24.80 per share, adjusted for the $0.80 dividend announced by Genco, as well as one Diana share.
According to Diana, the termination of the agreement with Star Bulk has no impact on the financing of the planned transaction. Six international banks have reportedly committed a total of $1.411 billion. There is no financing condition attached.
Diana CEO: “We continue to urge the Genco board”
“With the termination of the agreement, one of the objections raised by Genco against our proposal has been removed. Our fully funded offer remains in place,” explained Diana CEO Semiramis Paliou. “We continue to urge Genco’s board to negotiate with us directly and in good faith to reach a transaction that offers full and fair value to all Genco shareholders,” Paliou continued.
Meanwhile, Star Bulk CEO Petros Pappas attributed the withdrawal to the Genco board’s unwillingness to negotiate. However, his company still considers the planned takeover by Diana to be financially and strategically sound.
