Genco Shipping & Trading Limited sent a letter to shareholders outlining its strategy and rejecting a takeover proposal from Diana Shipping.
Strong Performance and Strategy
Genco says it continues to execute its value strategy. The company focuses on low leverage, high dividends, and fleet growth.
Over the past five years, Genco delivered 213% total shareholder return (TSR). This exceeds the S&P 500 (75%) and Diana Shipping (37%).
The company:
- Paid $292 million in dividends (~$7 per share)
- Invested $492 million in modern vessels
- Reduced debt by $250 million
Genco has paid dividends every quarter since April 2021.
Strong Financial Results
Genco reported multi-year highs in EBITDA and TCE in Q4 2025. It paid a $0.50 dividend, its highest since 2022.
The company expects higher dividends in Q1 2026 compared to Q1 2025. It continues to invest in high-quality vessels and strengthen its balance sheet.
Rejection of Diana Proposal
Diana offered $23.50 per share to acquire Genco. The Board rejected the offer.
Genco says the proposal undervalues the company and offers no adequate control premium. It also fails to reflect its assets, strategy, and market position.
The company remains open to discussions if Diana submits a fair offer.
Proxy Fight and Risks
Diana launched a proxy fight to replace Genco’s Board. Genco warns this move puts shareholder value at risk.
The company says:
- The vote is about control, not just the offer
- New directors could approve a lower-value deal
- They could change the high-dividend strategy
Genco highlights Diana’s weaker TSR and history of related-party transactions.
Governance and Position
Genco says it maintains strong governance. It has an independent Board, no related-party transactions, and top-quartile governance rankings.
The company remains confident in its strategy and expects to deliver strong returns in 2026 and beyond.
Shareholder Guidance
Genco urges shareholders to ignore materials from Diana. It says no action is required at this time.
