Genco Shipping & Trading Limited (NYSE: GNK) issued an open letter to shareholders on Aug. 17, 2026, following Diana Shipping Inc.'s withdrawal of its offer to acquire all outstanding Genco shares not already owned by Diana.

Genco's board stated it had communicated a transaction framework to Diana requiring compensation at net asset value (NAV) plus a control premium. According to the letter, Genco's advisors conveyed a framework of $27.50 per share in cash plus three Diana shares per Genco share. Genco valued Diana shares at approximately $1 each under this proposal.

Genco disputed Diana's public characterization of the framework as valuing Genco at $36.91 per share, calling the figure misleading. The company said its pro forma valuation of Diana shares, combined with Diana's stated intent to deduct Genco's Q2 2026 dividend of $0.80 per share from the offer, placed Diana's proposal well below Genco's $27.50 NAV.

The letter states that on Aug. 13, 2026, Genco's advisors attempted to negotiate improvements to Diana's latest proposal. Diana withdrew its offer without providing a counterproposal, according to Genco.

Genco noted that at its annual shareholder meeting on June 18, 2026, shareholders supported the existing board. The company reported a Q2 2026 dividend of $0.80 per share, which it described as a record under its Comprehensive Value Strategy. Since 2021, Genco said it has paid dividends totaling $8.715 per share across 28 consecutive quarterly payments.

Genco projected cumulative dividends for Q3 and Q4 2026 of more than $2.00 per share, based on fixtures representing 66% of owned fleet available days for Q3 and current forward freight agreement curves.

Jefferies LLC is serving as financial advisor to Genco, with Herbert Smith Freehills Kramer (US) LLP and Sidley Austin LLP as legal counsel. Morgan Stanley & Co. LLC is acting as special advisor to the board.