Glass Lewis, Egan-Jones Back Genco Board, Call Diana’s $24.80 Bid Undervalued
GNK•Glass Lewis and Egan-Jones urged Genco shareholders to vote for its entire board slate, withhold on Diana Shipping’s nominees and oppose Diana’s proposals. They said Diana’s $24.80 bid undervalues Genco versus $26.5–$26.8 NAV estimates, noting Q1 net income of $9.3 million and $36.2 million adjusted EBITDA.
1. Proxy Advisory Recommendations
Glass Lewis and Egan-Jones recommended voting FOR all director nominees on Genco’s white proxy card, WITHHOLD on Diana Shipping’s nominees and AGAINST Diana’s shareholder proposals, while urging support for Genco’s shareholder rights plan.
2. Diana’s Tender Offer Valuation
Both firms flagged Diana’s $24.80 per share bid as being roughly $2 below analyst NAV estimates of $26.5–$26.8 per share and lacking a control premium, arguing the offer undervalues Genco’s assets and future cycle benefits.
3. Genco’s Recent Financial Performance
In Q1 2026, Genco reported net income of $9.3 million, adjusted EBITDA of $36.2 million, average daily TCE rate of $19,346 and paid a $0.35 dividend. For Q2, management projected a daily TCE rate of about $23,900 and a $0.70 dividend.
4. Board Defense and Engagement
Genco’s board emphasized its formal evaluation process with external advice, stating willingness to re-engage if Diana revises its offer to include adequate NAV-based value and control premium, countering claims of board entrenchment.
