Diana Shipping Inc. (NYSE:DSX) shares are down on Friday as the company is increasing its offer to acquire Genco Shipping & Trading Limited (NYSE:GNK).

Increased Acquisition Offer

Diana Shipping has raised its all-cash offer to acquire Genco to $23.50 per share, representing a 31% premium over the undisturbed closing price prior to its initial offer.

The company has secured $1.433 billion in financing from leading banks to support this acquisition, which includes a definitive agreement with Star Bulk Carriers Corp. (NASDAQ:SBLK) to acquire 16 Genco vessels for $470.5 million.

The sixteen vessels that Star Bulk has agreed to acquire include one Newcastlemax, six Capesize vessels, seven Ultramax vessels, and two Supramax vessels, with a total carrying capacity of 1.8 million dwt and an average age of 11.4 years.

Assuming the successful consummation of this transaction, Star Bulk will have 157 ships on a fully delivered basis with a total carrying capacity of 15.9 million dwt and an average age of 12.0 years.

Earlier Offer Rejected

The proposal follows a previous offer of $20.60 per share, which was rejected by Genco’s board.

Diana’s CEO emphasized the financial and strategic merits of the acquisition, urging Genco’s board to engage in good-faith negotiations to deliver value to shareholders.

“We are pleased to support Diana on its proposed acquisition of Genco. We believe this en-bloc transaction allows Star Bulk to further increase its scale, earnings power and shareholder dividends, while preserving balance sheet strength and low leverage,” said Star Bulk CEO Petros Pappas.

Price Action: As of publication on Friday, Diana Shipping shares fell 4.15% to $2.42, Star Bulk Carriers declined 3.17% to $23.84, and Genco Shipping slipped 4.27% to $22.17, according to Benzinga Pro data.

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