Genco Shipping & Trading Emerges Victorious in Board Elections
Genco Shipping & Trading's shareholders have overwhelmingly re-elected all six company-backed director nominees, handing the dry bulk owner a major victory in its long-running battle with rival suitor Diana Shipping.
Preliminary Results and Shareholder Decisions
Based on preliminary results from the company's proxy solicitor, nearly 90% of shares not owned by Diana voted in favour of each of Genco's nominees. Shareholders also backed the company's equity incentive plan and shareholder rights agreement while rejecting proposals put forward by Diana.
Diana Shipping's Revised Offer
Despite the decisive vote, the takeover saga is not over. Diana Shipping unveiled a revised offer valued at $27.34 per share, comprising $24.80 in cash and one Diana share valued at $2.54. The Greek owner said the proposal represented a 53% premium to Genco's undisturbed share price and was backed by $1.43bn in committed financing from six international banks.
Analysts' Insights
Analysts at Scandinavian investment bank SEB said Diana's latest proposal values Genco at 0.98 times its estimated net asset value, slightly below its own NAV calculation and without a control premium. Following the re-election of Genco's board and shareholder approval of the company's poison pill, SEB said there is a risk the offer could be rejected for a fourth time on the same grounds cited by Genco previously.
Next Steps
Genco said its board is reviewing Diana's latest non-binding proposal with the assistance of financial and legal advisers. The company remains focused on maximising shareholder value and fulfilling its fiduciary duties.