Diana Shipping Inc. Cautions of Significant Downside Risk in Genco\u2019s Share Price<\/p>\n
Hellenic Shipping News<\/p>\n
Diana Shipping Inc., a global shipping company specializing in the ownership and bareboat charter-in of dry bulk vessels that is the largest shareholder of Genco Shipping & Trading Limited GNK (\u201cGenco\u201d), today cautioned that Genco\u2019s current share price appears to be artificially inflated by Diana\u2019s $23.50 per share cash offer, and that, without Diana\u2019s offer, Genco\u2019s share price could return to the persistent discount to NAV at which it has historically traded.<\/p>\n
Genco\u2019s net asset value (\u201cNAV\u201d) as of March 31, 2026, based on vesselsvalue.com, is approximately $25.40 per share, which excludes adjustments of at least $0.80 per share for change in control costs, including the cost of accelerated equity implemented by Genco\u2019s Board. Genco\u2019s stock is currently trading around that level with the support of Diana\u2019s offer. Genco\u2019s stock has traded at an average 30% discount to NAV since 20201; if Diana\u2019s offer is taken off the table, the stock could once again trade at those levels, implying a price in the area of $17.50 per share.<\/p>\n
This is a very substantial risk, as Genco\u2019s Board and management team have spent millions of dollars trying to defeat Diana\u2019s offer, knowing very well that doing so will seriously risk damaging shareholder value.<\/p>\n
Given Genco\u2019s current inflated share price, Diana has sold a portion of its shareholdings. Diana currently intends to maintain a significant ownership stake, yet at the current price level \u2013 which, as stated above, it believes is at risk \u2013 it is prudent to realize a profit on its considerable investment. Funds generated by stock sales would be utilized, along with the $1.443 billion of fully committed financing, to fund Diana\u2019s acquisition of the outstanding shares of Genco for $23.50 per share in cash if a transaction can be reached with Genco. Importantly, Diana\u2019s decision to sell shares does not in any way diminish its commitment to acquiring Genco. In fact, it strengthens both Diana\u2019s conviction in the transaction opportunity and its ability to complete it in the most cost-effective manner.<\/p>\n
Semiramis Paliou, Diana\u2019s Chief Executive Officer, commented:<\/p>\n
\u201cOur $23.50 per share all cash offer has brought Genco\u2019s share price to a valuation it has never sustained on its own \u2014 because it reflects the premium value of our offer. The Genco Board and management team want shareholders to believe that the inflated share price is a result of their performance, and, knowing that\u2019s not the case, is willing to risk hundreds of millions of dollars of shareholder value. Genco shareholders have a clear opportunity to protect the value of their investment by electing independent directors committed to ensuring every value-maximizing alternative is evaluated on the merits. A vote for our nominees is a vote to find out what Genco is really worth through consideration of all value creation opportunities \u2014 and the historical record makes the alternative perfectly clear.\u201d<\/p>\n
Diana\u2019s six nominees \u2014 Gustave Brun-Lie, Paul Cornell, Chao Sih Hing Francois, Jens Ismar, Viktoria Poziopoulou and Quentin Soanes \u2014 share a single purpose: ensuring the Genco Board fulfills its fiduciary obligation to evaluate all value-maximizing alternatives on the merits, including Diana\u2019s $23.50 per share all-cash offer.<\/p>\n
Diana urges all Genco shareholders to vote the GOLD universal proxy card \u201cFOR\u201d each of its six independent nominees and WITHHOLD on Genco\u2019s nominees. Diana also urges shareholders to tender their shares pursuant to Diana\u2019s tender offer at $23.50 per share in cash. The proxy vote and the tender offer are independent of each other \u2014 shareholders can and should act on both opportunities.<\/p>\n
Shareholders who have already voted the WHITE card can change their vote by signing, dating and returning the enclosed GOLD universal proxy card. Only the latest-dated proxy will count. Please act as soon as possible \u2014 the tender offer expires at 5:00 p.m., New York City time, on June 2, 2026, unless extended, and the Annual Meeting is on June 18, 2026.<\/p>\n
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