Semiramis Paliou hits back at Genco rejection, moves to reshape board

The Greek owner signalled it is not prepared to withdraw, vowing to continue efforts to elect independent directors to Genco’s board.

The US-based shipowner said on 19 March that Diana’s offer undervalues Genco, fails to provide an adequate premium to shareholders, and carries execution risks. Genco has also raised concerns over the preliminary sale and purchase agreement between Diana and Star Bulk Carriers.

On 20 March, Diana chief executive Semiramis Paliou responded that “rather than constructively engaging” with the proposal, the Genco board has dismissed the offer for a second time “without seeking any clarification.”

“At the same time, they have continued to raise unfounded questions about our financing that are clearly disproved by our public disclosures,” she said.

Addressing these concerns, Ms Paliou stated that the total US$1.43Bn financing package is fully committed and not conditional on the sale of vessels to Star Bulk.

“Genco is fully aware that the firm commitment for US$1.10Bn of acquisition debt financing that we have publicly disclosed provides sufficient proceeds to complete the US$23.50 per share transaction. The additional fully committed US$331M relates only to a voluntary refinancing of Diana’s existing debt and has no bearing on our ability to close,” Ms Paliou added.

The owner argued that Genco’s claims “are simply false and appear intended to divert attention from the fact that our proposal is fully financed.”

Responding to Genco’s criticism that vessels would be sold to Star Bulk at a valuation 14% below average broker estimates, Ms Paliou said the US-based owner had focused on pricing “which is not relevant to our ability to complete the proposed transaction and does not have any impact on Genco shareholders.”

She said Genco’s board is focused on “entrenchment over shareholder value,” adding that Diana has no choice but to proceed “with our effort to elect independent directors to the Genco board who will act in the best interests of all shareholders.”

The Greek owner has nominated six “highly qualified” shipping executives who are expected to stand for election at Genco’s 2026 annual shareholders’ meeting. Genco has previously defended the current composition of its board.

“Diana continues to call on its fellow Genco shareholders to urge the Genco board and management team to act favourably with respect to Diana’s fully financed premium offer,” the company said.

Diana currently owns approximately 14.8% of Genco’s outstanding common shares.