According to Splash247, Diana Shipping has begun selling down its stake in Genco Shipping & Trading, offloading 1.2m shares for just over $32m following the collapse of its nine-month takeover campaign. The Semiramis Paliou-led bulker owner sold 450,000 Genco shares on August 21 and another 750,000 on August 24, according to 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.
Stake Reduction Details
The disposals cut Diana's position from 6.26m shares, or 14.4%, to just over 5.06m shares representing 11.62% of Genco, Splash247 reported. At the average price achieved in the latest sales, the remaining holding would still be worth roughly $135m. Diana is also set to collect around $5m from Genco's latest dividend, according to Splash247. The New York-listed owner declared an $0.80-per-share payout with an August 17 record date and August 24 payment date, when Diana still held its entire 6.26m-share position.
| Position metric | Before sales | After sales |
|---|---|---|
| Shares held | 6.26m | 5.06m |
| Ownership % | 14.4% | 11.62% |
| Approx. value | – | $135m |
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, according to Splash247.
How the Stake Was Built
The sale prices are well above the levels at which Diana built most of its Genco stake, Splash247 reported. The Greek owner first disclosed a 7.72% holding in July last year after spending around $46m on 3.32m shares acquired between April and July. By the end of that month, it had spent $61.7m to lift the position to 9.99%, before adding another 2.12m shares in September at a weighted average of $19.64 apiece to take its holding close to 15%.
Failed Takeover Timeline
The move comes less than two weeks after Diana abandoned its pursuit of Genco following one of the more drawn-out takeover battles in listed dry bulk shipping, according to Splash247. Diana first approached Genco in November with a $20.60-per-share cash proposal, then lifted the offer to $23.50 in March and brought Star Bulk Carriers into the transaction. Under that structure, Star Bulk had agreed to buy 16 Genco vessels for $470.5m if Diana completed the takeover, while banks led by DNB Carnegie and Nordea lined up more than $1.4bn of financing.
| Offer stage | Terms |
|---|---|
| November | $20.60 per share cash |
| March | $23.50 per share cash |
| June | $24.80 per share cash plus one Diana share |
| Genco counterproposal | About $36.91 per share |
The fight spilled into a proxy contest, but Genco shareholders backed the incumbent board in June, and Diana's tender expired in July with 11.78m shares tendered, equal to 31.6% of the stock it did not already own, Splash247 reported. Star Bulk walked away from the conditional vessel deal on August 10, with Diana pulling 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.
Fleet Footprint and Operator Implications
Despite the share sales, Genco has continued to expand since the takeover battle began, according to Splash247. Genco now owns 44 bulkers totalling about 5.12m dwt following the addition of the 2019-built capesize Genco Volunteer. Diana, meanwhile, operates 36 bulkers totalling around 4.1m dwt and has two methanol dual-fuel kamsarmax newbuildings still to come. The share sale itself does not alter these fleet sizes, leaving the dry bulk lift capacity reported by Splash247 unchanged.
For logistics managers and charterers, the key development is that the financial position of both shipowners has shifted: Diana has converted part of its Genco stake into cash — about $32.06m — while retaining a stake worth approximately $135m, and it is due roughly $5m in dividend income from Genco's latest payout, Splash247 reported.
Watch List
- Whether Diana further trims its 11.62% stake in Genco, as it continues to hold a position worth roughly $135m.
- Genco's fleet expansion momentum, with the addition of the 2019-built capesize Genco Volunteer bringing it to 44 bulkers.
- The delivery timeline for Diana's two methanol dual-fuel kamsarmax newbuildings, which will add to its 36-bulker fleet.
- Any renewed consolidation moves in listed dry bulk shipping after the Diana–Genco battle collapsed and Star Bulk exited its conditional vessel purchase.
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