Genco Shipping lowers threshold on 'poison pill' to deter aggressive investors

The move aims to curb aggressive investors and the rapid accumulation of the company’s stock by what it described as “a competitor.”

The US-listed dry bulk owner said its board has approved an amendment to the one-year limited-duration shareholder rights plan, which expires in September 2026.

Under the revised terms, an investor becomes an “acquiring person” upon reaching 10% beneficial ownership, or 15% in the case of investors filing under Schedule 13G, who are considered passive holders. The plan continues to exempt the “Grandfathered Shareholder,” which already holds nearly 15% of Genco’s common stock.

Genco originally adopted the plan after Diana Shipping, led by Semiramis Paliou, raised its stake in the company to 14.93%.

Targeting a ’competitor’

Genco’s board said the amendment is “in the best interests of the company and its shareholders,” calling it an appropriate and proportionate response to “ongoing circumstances” following the adoption of the rights agreement.

The company cited the rapid accumulation of its stock by a competitor and the potential that the position could be transferred in whole or in part. The plan is intended to reduce the likelihood that any investor could gain control or significant influence through open-market purchases or similar tactics – without offering all shareholders a fair control premium.

During a recent earnings call, Genco chief executive John C Wobensmith said the measure was meant “to slow things down,” ensuring that any potential transaction would serve the best interests of shareholders.

For its part, Diana Shipping has described its stake in Genco as a “strategic investment,” calling the company a well-managed dry bulk operator trading at a discount to its net asset value.

As of today, Genco’s fleet comprises 43 bulk carriers – 17 Capesize, 15 Ultramax and 11 Supramax vessels.