Dry CargoEurope

Diana Shipping to spin off three older bulkers

New York-listed bulker owner Diana Shipping will spin off three of its older ships into a newly formed vehicle, OceanPal Inc., and have its common shares listed on Nasdaq.

In connection with the spin-off, the company will contribute the three vessel-owning subsidiaries, together with initial working capital of $1m, to OceanPal, and will distribute all of its common shares to the company’s shareholders of record as of October 29, 2021. The Greek owner will also receive preferred shares in OceanPal that will entitle it to certain preferred dividend and voting rights.

Diana also announced on Monday that concurrently with the consummation of the spin-off transaction, it will pay a cash dividend in the amount of $0.10 per common share to shareholders as of October 29. The transaction is expected to be completed on or around November 9, 2021.

Semiramis Paliou, CEO of Diana Shipping, said: “Management of Diana Shipping believes that the distribution of a separate, publicly-traded dry bulk company focusing on older vessels with shorter duration charters will further enhance shareholder value by providing greater exposure to the shorter-term charter market while allowing Diana Shipping to continue to focus on its disciplined long-term managed growth. At the same time, the cash dividend of $0.10 for this quarter represents a good indication of the ability of the company to pay a cash dividend on a quarterly basis at current market levels.”

Adis Ajdin

Adis is an experienced news reporter with a backgroud in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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