Baltic-Genco Merger Completed
Dry bulk specialists Genco Shipping & Trading Limited and Baltic Trading Limited have completed their merger on July 17, 2015, in which Genco acquired Baltic Trading in a stock-for-stock transaction.
Genco is expected to begin trading when the market opens on Monday, July 20, 2015 on the New York Stock Exchange (NYSE) under the symbol GNK.
Peter C. Georgiopoulos, Chairman of the Genco Board of Directors, said, “Today marks an important milestone for both Genco and Baltic Trading. I would like to thank the shareholders of each company for their continued support as well as the independent directors of each company for their leadership in this process.”
John C. Wobensmith, President of Genco, said, “We are excited about this combination and its ability to strengthen our financial position and significantly enhance our scale and operations. We are confident that with an expanded platform and simplified ownership structure, the Company is well positioned to build on our position as a leader in international dry bulk shipping and create significant value for shareholders.”
In accordance with the terms of the merger agreement, Baltic Trading is now an indirect wholly-owned subsidiary of Genco.
Baltic Trading shareholders (other than Genco and its subsidiaries) will receive 0.216 shares of Genco common stock for each share of Baltic Trading common stock they own, with fractional shares to be settled in cash, the two companies said in a joint release.
Immediately following the merger, Genco shareholders owned approximately 84.5 percent of the combined company, and Baltic Trading shareholders owned approximately 15.5 percent of the combined company.
The merger has been under spotlight over the recent period as shareholders raised claims against Baltic Trading’s Board of Directors for possible breaches of fiduciary duty and other violations of state law in connection with the sale of the company to Genco.
The transaction may both undervalue Baltic and would result in a loss for many Baltic shareholders, says Brodsky & Smith law firm, which is investigating the claims.
Three other law firms have also launched investigation efforts targeting the acquisition amid concerns over the price of the Baltic’s shares being too low, these include Levi & Korsinsky, Tripp Levy PLLC and Rigrodsky & Long, P.A.
