Shipping Stocks: Diana Makes a Deal

Diana Shipping announces an agreement to buy the owner of a Capesize newbuilding vessel.
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Dry bulk shipping stocks were rising Monday afternoon after

Diana Shipping

(DSX) - Get Report

announced an agreement to buy Gala Properties, which has a contract with

China Shipbuilding Trading

and

Shanghai Jiangnan-Changxing Shipbuilding

for the construction of a Capesize dry bulk carrier with a contract price of $60.2 million.

In exchange, Diana will transfer to the seller its ownership interest in

Eniwetok Shipping Company

, a wholly owned subsidiary of Diana. Incremental costs to Diana, excluding certain fees, will be $15 million.

Gala Properties has time chartered the vessel in question to Jiangsu Shagang Group or its nominee at a rate of $55,000 per day for at least 59 months and at most 62 months. Diana expects the employment to generate about $97 million in gross revenue for the minimum period.Diana shares were rising 1.4% to $13.37 in recent trading.

Elsewhere:

Navios Maritime

(NM) - Get Report

shares was leading the winners in percentage gains, rising 9.4% to $2.57.

Eagle Bulk Shipping

(EGLE) - Get Report

was rising 2.6% to $4.67.

Genco Shipping & Trading

(GNK) - Get Report

was up 3% to $14.62.

Excel Maritime Carriers

(EXM)

was falling 0.4% to $6.74.

DryShips was up 2.5% to $4.87.