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Diana Shipping Seeks to Replace Genco Board in Proxy Fight as Genco Rejects Bid

Genco says the $20.60 offer undervalues the company, touting a potential transaction in which Genco acquires Diana.

Bulk carrier Naias of Diana Shipping is docked in Riga port, Latvia May 31, 2019. REUTERS/Ints Kalnins/File Photo

Overview

  • Genco disclosed that Diana intends to nominate six director candidates to replace the entire board at the company’s 2026 annual meeting.
  • The move follows Genco’s decision this week to reject Diana’s November 24 indicative cash bid of $20.60 per share.
  • Genco said the offer carries execution risks and undervalues the business, while authorizing engagement on a structure in which Genco would acquire Diana using cash and Genco equity.
  • Reuters previously reported that Diana, which owns nearly 15% of Genco, plans to field nominees with maritime industry experience to consider alternatives including a review of its bid.
  • Genco told shareholders no action is required now, said its board committee will review the nominees, and noted the stock closed at $19.88 after a 12-month gain of 36%.