Genco Warns Diana’s $24.80 Tender Offer Undervalues NAV as Vote Deadline Nears
GNK•Genco reminds shareholders to vote by 11:59 PM ET today on its white proxy card, urging support for its six director nominees and rejection of Diana Shipping’s two nominees. The company highlights its $7.16 per-share dividends, 210% return and says Diana’s $24.80 tender offer undervalues its NAV without a control premium.
1. Voting Deadline Reminder
Genco Shipping & Trading has set a shareholder vote deadline for 11:59 PM ET today, urging investors to submit ballots using the company’s white proxy card. The board recommends a 'FOR' vote on its six director nominees, 'WITHHOLD' on Diana Shipping’s nominees and 'AGAINST' Diana’s shareholder proposals.
2. Proxy Advisory Endorsements
All three leading advisory firms—ISS, Glass Lewis and Egan-Jones—have recommended supporting Genco’s board nominees and rejecting Diana’s candidates. They also advised approval of Genco’s equity incentive plan, with Glass Lewis and Egan-Jones endorsing the Shareholder Rights Agreement to protect against a creeping control bid.
3. Financial Performance Highlights
Genco highlights its successful Comprehensive Value Strategy that has returned $7.16 per share in dividends and delivered a 210% total share return. The company emphasizes its fleet of 43 vessels, industry-low breakeven costs and high operating leverage in a strengthening drybulk market.
4. Diana’s Tender Offer and Nominee Risks
Diana Shipping’s $24.80 tender offer is characterized as materially undervaluing Genco’s net asset value and omitting any control premium. Genco alleges Diana’s nominees have conflict of interest ties and poor track records, warning they could pursue value-destructive strategies similar to those that led to bankruptcy at Western Bulk.
