Diana Shipping and Star Bulk Carriers Corporation have mutually agreed to terminate their vessel sale and purchase agreement following a request from Star Bulk.
Under the deal, Star Bulk was set to acquire 16 Genco Shipping and Trading vessels upon completion of Diana Shipping's proposed acquisition of Genco.
The termination has no impact on the $1.411 billion in committed financing secured by Diana Shipping from six international banks to fund the transaction.
The company said its offer to acquire all outstanding shares of Genco also remains active at $24.80 per share in cash plus one Diana Shipping share valued at $2.54, based on its 30-day volume-weighted average price as of June 16.
Nearly eight weeks have elapsed since Diana Shipping delivered its revised proposal, with Genco's board of directors yet to provide a substantive response.
Diana Shipping Chief Executive Officer Semiramis Paliou said terminating the agreement removes one of the concerns raised by Genco while leaving the offer on the table. Paliou added that Diana Shipping continues to call on Genco's board to engage directly and in good faith to reach a transaction.
Meanwhile, Star Bulk Chief Executive Officer Petros Pappas attributed the decision to withdraw from the purchase agreement to the Genco board's unwillingness to negotiate.
