Star Bulk Carriers has pulled out of a $470.5m agreement to acquire 16 Genco Shipping & Trading bulkers from Diana Shipping, according to Splash247. The termination removes a key fleet component from Diana’s long-running takeover attempt.
The two Greek owners mutually terminated the sale and purchase agreement at Star Bulk’s request, Splash247 reported. The deal, signed in March, was conditional on Diana completing the acquisition of Genco.
Fleet package details
According to Splash247, the terminated package covered one newcastlemax, six capesizes, seven ultramaxes and two supramaxes with combined capacity of around 1.8m dwt and an average age of 11.4 years. Had the acquisition closed, it would have expanded Star Bulk’s fleet to about 157 vessels.
| Vessel class | Number of vessels |
|---|---|
| Newcastlemax | 1 |
| Capesize | 6 |
| Ultramax | 7 |
| Supramax | 2 |
| Total | 16 |
Diana’s takeover bid
Diana said the termination would not affect its offer for Genco or the $1.411bn financing committed by six international banks, Splash247 reported. The current proposal comprises $24.80 per share in cash, subject to an adjustment for Genco’s recently declared $0.80 dividend, plus one Diana share valued at $2.54 when the offer was tabled.
Diana, Genco’s largest shareholder, allowed a separate hostile tender offer to expire on July 24 after around 11.78m shares were tendered, according to Splash247. That represented 31.6% of the Genco stock not already controlled by Diana.
The Athens-based owner has kept the cash-and-stock proposal before Genco’s board despite losing a June proxy fight in which shareholders re-elected all six Genco-backed directors.
What the walk-away means for dry bulk operators
Star Bulk chief executive Petros Pappas linked the decision to the lack of progress between Diana and Genco, while maintaining support for the proposed takeover, according to Splash247. The termination removes what Splash247 described as a key fleet component from Diana’s takeover attempt.
For shippers and operators tracking dry bulk consolidation, the immediate takeaway is that the 16-vessel package — roughly 1.8m dwt across newcastlemax, capesize, ultramax and supramax units — will not be absorbed by Star Bulk while the Diana–Genco deal remains unresolved. Diana maintains that the offer and its committed financing remain intact, and the proposal remains before Genco’s board, according to Splash247.
The hostile tender offer expired on July 24 with around 11.78m shares tendered, representing 31.6% of the Genco stock not already controlled by Diana. The June proxy fight returned all six Genco-backed directors, yet Diana has kept the cash-and-stock proposal alive. Star Bulk’s fleet would have grown to approximately 157 vessels had the deal closed; that expansion is now off the table, leaving the 16 bulkers under Genco’s operational umbrella and subject to the outcome of Diana’s ongoing offer.
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