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NEW YORK - Genco Shipping & Trading Limited (NYSE:GNK) announced Wednesday that its Board of Directors has adopted a limited duration shareholder rights plan, effective immediately and set to expire on September 30, 2026.
The plan, commonly known as a "poison pill," is designed to prevent any entity, person, or group from gaining control of the company through open-market accumulation without paying an appropriate control premium to all shareholders. This move comes as the company’s stock has shown remarkable strength, with InvestingPro reporting a 32.8% price return over the past six months.
Under the terms of the Rights Plan, Genco will issue one right for each share of common stock outstanding as of October 13, 2025. These rights would become exercisable if an entity acquires 15% or more of Genco’s common stock without Board approval.
If triggered, each shareholder other than the acquiring entity would have the right to purchase additional company shares at a discounted rate, effectively diluting the ownership stake of the potential acquirer.
The company stated that the plan is not intended to deter fair offers and does not prevent the Board from considering any proposal. The Board may terminate the plan earlier than its expiration date if conditions warrant, and any extension would require shareholder approval.
Genco Shipping & Trading Limited is the largest U.S.-headquartered drybulk shipowner focused on global commodity transportation. The company’s fleet consists of 43 vessels with an average age of 12.7 years and an aggregate capacity of approximately 4,628,000 dwt.
The announcement was made in a press release statement issued by the company.
In other recent news, Genco Shipping & Trading Ltd reported its Q2 2025 earnings, revealing a net loss per share of $0.16, which was larger than the forecasted $0.12. However, the company significantly exceeded revenue expectations by posting $80.94 million, compared to the forecast of $49.96 million. In addition to its financial results, Genco Shipping announced changes to its board of directors following the resignation of Chairman James G. Dolphin. Mr. Dolphin’s resignation became effective on August 26, 2025, and was not due to any disagreement with the company’s strategy or operations. Following this, the board adopted a Fifth Amendment to the company’s Amended and Restated By-laws, granting the Lead Independent Director the authority to call a special meeting of the board. These recent developments indicate a period of transition for Genco Shipping as it navigates both financial challenges and leadership changes.
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