Athens-based New York-listed shipowner and operator Diana Shipping (DSX) offshot Performance Shipping (PSHG) is rumored to be making a significant move into the dry bulk sector. While the New York-listed Andreas Michalopoulos-led shipowner and operator has not officially confirmed the reports, several shipbrokers in Greece, London, and the US have indicated that Performance Shipping (PSHG) is in the process of placing an order for two (2) 64K DWT ultramax bulk carrier newbuildings. These two (2) 64K DWT ultramax bulk carrier newbuildings are said to be contracted with Sumec Marine’s New Dayang Shipbuilding at a total cost of $32.5 million. This potential expansion into the dry bulk market marks a notable shift for Performance Shipping (PSHG), which transitioned from container ships to tankers three years ago. The move suggests the Performance Shipping’s (PSHG) willingness to diversify its operations and explore new opportunities within the shipping industry. However, until the Performance Shipping (PSHG) officially confirms the order, these reports remain speculative. 20-November-2023
Tensions are intensifying at Performance Shipping (PSHG), as Greek shipowner George Economou escalates his efforts to gain control of the US-listed tanker company by taking his legal battle to the New York State Supreme Court. George Economou, who holds approximately 9% of Performance Shipping’s (PSHG) shares through his investment entity Sphinx, initiated a hostile tender offer in October to purchase all outstanding common stock of Performance Shipping (PSHG) at $3.00 per share in cash. This offer is viewed as highly conditional, with most conditions under the control of the company and its board. These conditions include the cancellation of the company’s Series C convertible preferred stock, which is held by chairwoman Aliki Paliou and her husband, CEO Andreas Michalopoulos. George Economou has chosen to sue insiders and directors of Performance Shipping (PSHG), alleging a breach of fiduciary duties to shareholders. He claims they improperly established a dual-class capital structure that granted control of Performance Shipping (PSHG) to the family of its former leader, Simeon Palios. Paliou Palios, Simeon Palios’ daughter, controls roughly 90% of Performance Shipping (PSHG) through her investment vehicle Mango, along with Michalopoulos and his firm Mitzela. Sphinx alleges that four directors—Giannakis Evangelou, Antonios Karavias, Christos Glavanis, and Reidar Brekke—conspired to secure control of Performance Shipping (PSHG) for Mango, Mitzela, and the “Paliou family insiders,” thus strengthening chair Paliou and her family’s position at the expense of public shareholders. The lawsuit specifically contends that the insiders and directors devised an exchange offer that allowed holders of tradable stocks to exchange them for nonvoting Series B preferred shares, which they could not sell but could later convert to Series C preferred shares with ten times the voting power of common stock and other rights, including dividend receipt. According to Sphinx, the Performance Shipping (PSHG) board permitted Paliou Palios to use a private placement to expedite her exchange of Series B preferred shares for Series C preferred shares several months ahead of other public shareholders who accepted the exchange offer. George Economou, represented by lawyers from Cadwalader, Wickersham & Taft, argues that “under this scheme, the Paliou family insiders effectively issued to themselves a new class of super-voting shares,” alleging that the directors breached their duties and disenfranchised common stockholders. Sphinx also noted in a filing with the US Securities and Exchange Commission (SEC) that New York-based investment bank Maxim facilitated multiple stock issuances between May 2022 and March 2023 that significantly diluted the value and voting power of the remaining common shares, while safeguarding the Paliou family insiders from typical costs borne by shareholders during a capital raise. George Economou, the Greek shipping magnate who owns over 100 ships, is seeking court intervention to cancel the Series C preferred shares issued to Paliou and Michalopoulos and a declaration that these shares should not have voting rights at Performance Shipping’s (PSHG) 2024 AGM, scheduled for February. Additionally, he is requesting the reinstatement of common shares for public shareholders who participated in the exchange offer. In the meantime, George Economou has extended his cash offer for all outstanding shares of common stock in Performance Shipping (PSHG) until November 15, 2023. George Economou has also acquired a significant stake in OceanPal, another shipping company controlled by the Palios family that was spun off from Diana Shipping (DSX) in 2022. However, George Economou’s intentions regarding this investment in OceanPal remain undisclosed. 30-October-2023
Athens-based shipowner and operator TMS Dry Ltd, led by George Economou, has initiated a proposal to acquire Performance Shipping (PSHG) and replace its board. This move comes after a dispute with the leadership following George Economou’s acquisition of a stake in the company in August 2023. The Greek shipping magnate, George Economou, has presented a bid to take control of Performance Shipping (PSHG), a Greek-based tanker company, following his stake acquisition in August 2023. Upon making this investment, the head of TMS Group expressed strong dissatisfaction with the management practices within the New York-listed organization. As per a filing with the SEC (Securities and Exchange Commission), this aggressive acquisition strategy could result in George Economou gaining full control, making changes to the executive team, ousting the current board, and potentially selling all or part of the company’s fleet. 12-October-2023
George Economou is intensifying his efforts to acquire Performance Shipping (PSHG), launching a tender offer for all of its remaining common shares. The Greek shipping mogul has initiated a cash transaction at $3 per share, aiming to purchase the outstanding shares of the New York-listed tanker company. According to a U.S. Securities and Exchange Commission (SEC) filing by Performance Shipping (PSHG), Economou currently holds an 8.8% stake, which translates to approximately 1.03 million shares acquired for $1.48 million out of the company’s 11.7 million outstanding shares as of September 29, 2023. The tender offer, extended through his investment entity Sphinx, a subsidiary of Maryport Navigation, is set to expire on November 8, 2023, with the possibility of extensions.
Economou’s bid offers a substantial 78.6% premium over Performance Shipping’s (PSHG) closing share price of $1.68 on October 10, 2023. Following this announcement, the company’s stock price surged, closing at $2.15 in the latest trading session. In addition to seeking a position on Performance Shipping’s (PSHG) board, George Economou is calling for the resignation of four current directors, including CEO Andreas Nikolaos Michalopoulos. He has proposed the election of John Liveris, a former chairman of OceanFreight and former board member of Ocean Rig, at the upcoming annual shareholders’ meeting. Should Liveris be elected, he would replace the current chairperson and major shareholder of Performance Shipping (PSHG), Aliki Paliou. Sphinx, George Economou’s investment firm, has made it clear that if the offer succeeds, they intend to nominate the majority of the board members and acquire at least half of the fully diluted issued shares of Performance Shipping (PSHG). This would give them the majority of the company’s voting power on director elections. Performance Shipping (PSHG), formerly known as Diana Containerships, has previously raised concerns about Economou’s intentions, although they are open to dialogue. Furthermore, George Economou has taken a strategic position in OceanPal, a company related to the Palios family and a spin-off of Diana Shipping (DSX). Holding a approximately 9% stake in OceanPal, which owns several bulk carriers, he has the right to engage in discussions regarding various aspects of OceanPal’s business, including its board structure, management, operations, and strategic direction. Economou may also consider increasing his stake through open market acquisitions or transactions with other shareholders. 11-October-2023
Greek shipowner George Economou has made a significant investment in another Nasdaq-listed shipowner, OceanPal, according to a filing with the US Securities and Exchange Commission. Economou’s investment entity, Sphinx, which operates under Maryport Navigation, has acquired more than 324,000 shares at an approximate cost of $563,000. This purchase represents a 9.1% ownership stake in Nasdaq-listed shipowner OceanPal, based on the company’s 3.55 million outstanding shares as of June 30, 2023. OceanPal is listed on the Nasdaq Stock Market and is a sister company to Diana Shipping (DSX). It operates a fleet of three panamax bulk carriers and two capesize bulk carriers, managed by Diana Wilhelmsen Management and Steamship Shipbroking Enterprises. The fleet has an average age of 18 years and is valued at nearly $61.5 million.
This investment marks George Economou’s second foray into shipowners associated with the Palios family in 2023. In August, Economou, who owns a diverse fleet of over 100 ships in dry bulk, tanker, and LNG categories, invested in the Nasdaq-listed aframax tanker specialist, Performance Shipping (PSHG). Performance Shipping, formerly known as Diana Containerships, and OceanPal are both led by Aliki Paliou and Semiramis Paliou. With this ownership stake in Nasdaq-listed shipowner OceanPal, George Economou gains the ability to participate in discussions regarding various aspects of the company, including its board structure, management, operations, strategy, and future prospects. Sphinx’s disclosure also mentions the possibility of Economou considering further increases in his stake, either through open market acquisitions or by purchasing shares from other shareholders. George Economou’s recent involvement with Nasdaq-listed shipowner OceanPal has raised questions about his intentions. Earlier this month, Performance Shipping stated that Economou had been taking increasingly assertive actions against the company. While Performance Shipping is open to dialogue with Economou, the company has also expressed concerns about his intentions. 28-September-2023
New York-listed shipowner and operator Diana Shipping (DSX) appointed Semiramis Paliou, the daughter of Simeon Palios, as the new CEO (Chief Executive Officer). In 1972, Simeon Palios established Diana Shipping Agencies, Diana Shipping’s predecessor. In 2005, Simeon Palios established Diana Shipping and has since then worked as CEO and chairman. Semiramis Paliou has served as a director of Diana Shipping since March 2015 and its chief operating officer since August 2018. In October 2019, Semiramis Paliou was appointed as deputy CEO of Diana Shipping. Furthermore, Semiramis Paliou served as chief operating officer of Diana Shipping’s sister company, containership owner Performance Shipping. In 1996, Semiramis Paliou started her career in shipping as a traineeship surveyor for Lloyd’s Register of Shipping (LR). Semiramis Paliou has worked as head of operations, technical and crew department in Diana Shipping Services. Simeon Palios will remain as non-executive chairman when Semiramis Paliou assumes the CEO (Chief Executive Officer) role, effective on 1 March 2021. Diana Shipping (DSX) reported a net loss of $140 million in 2020. Currently, New York-listed shipowner and operator Diana Shipping (DSX) has a fleet of 37 bulk carriers. 21-February-2021
Athens-based New York-listed shipowner and operator Diana Shipping (DSX) has secured a charter for one of its prominent capesize vessels to Oldendorff Carriers, albeit at a diminished rate compared to the previous agreement with Berge Bulk Shipping. Under the vigilant guidance of Simeon Palios, Diana Shipping (DSX) has formalized a time charter accord with Oldendorff, concerning the 174,186 DWT capesize vessel, MV Sideris (constructed in 2006). The arrangement, which begins at $12,700 daily, spans from 15 October to a possible extension until 31 December. The embarkation of this charter is slated for 8 March, with projected revenue approximations hovering around $2.76 million for the New York-registered Hellenic maritime entity, Diana Shipping (DSX). It’s noteworthy that Diana Shipping (DSX) had previously secured an agreement for the aforementioned vessel with Berge Bulk, priced at $15,350 daily over a 15-month duration. As per the Baltic Exchange’s recent data, the capesize bulk carriers’ weighted time charter average stands at $2,542, juxtaposed with the $15,194 daily rate recorded at December’s end in 2018. Following the successful conclusion of a prior sale involving a capesize bulk carrier, Diana Shipping (DSX) will proudly command a fleet comprising 41 dry bulk vessels. A mere week prior, Diana Shipping (DSX) unveiled a strategic leadership realignment within its affiliate, Performance Shipping, heralding the impending segregation of the two establishments. 5-March-2020
Performance Shipping (PSHG) and Diana Shipping (DSX), both Athens-based New York-listed shipowners and operators, have undergone significant leadership changes as part of a succession plan initiated in October. At its annual board meeting on February 18, Performance Shipping accepted the resignations of President Anastasios Margaronis, Chief Strategy Officer and Secretary Ioannis Zafirakis, and Chief Operating Officer Semiramis Paliou. Anastasios Margaronis, Ioannis Zafirakis, and Nikolaos Petzemas also stepped down from Performance Shipping’s board. Semiramis Paliou had previously become the Deputy Chief Executive of Diana Shipping in late October as part of the succession plan initiated by her father, Simeon Palios, who is the founder, chairman, and chief executive of Diana Shipping. Andreas Michalopoulos, Deputy Chief Executive and Chief Financial Officer of Performance Shipping, replaced Ioannis Zafirakis as Secretary and Treasurer.
Christos Glavanis and Aliki Paliou were appointed to fill the seats vacated by Margaronis and Petmezas on Performance Shipping’s board. Christos Glavanis also assumed the role of Compensation Committee Chairman. Aliki Paliou had been serving as an independent director of the company since February 2020. Additionally, Ioannis Zafirakis became Diana Shipping’s Interim Chief Financial Officer and Treasurer, replacing Michalopoulos, who stepped down from those roles at the annual board meeting on February 19. Ioannis Zafirakis had been a director, Chief Strategy Officer, and Secretary for Diana Shipping since August 2018. Anastasios Michalopoulos also resigned from Diana Shipping’s board, along with fellow board member Christos Glavanis. The board, which previously had 11 seats, now has nine members following these changes. 28-February-2020
Performance Shipping (PSHG) is making significant strides toward becoming a pure-play Aframax tanker owner. The New York-listed company, Performance Shipping, has taken a significant step by signing a memorandum of understanding to acquire the Aframax vessel MT FSL Shanghai, built in 2007, for $26 million from an unrelated seller. The delivery of MT FSL Shanghai is expected at the end of March. Performance Shipping, a Greek shipowner, has been gradually transitioning into an exclusively Aframax fleet since changing its name from Diana Containerships a year ago. This acquisition marks another addition to its Aframax fleet, bringing the total to four Aframax vessels along with one boxship. As part of its strategy, Performance Shipping has also divested itself of three boxships, including a post-panamax vessel sold to Chartworld in January. Andreas Michalopoulos, who leads Performance Shipping, expressed satisfaction with the acquisition, stating that it brings the company one step closer to becoming the only publicly listed pure-play Aframax company. The company believes it is well-positioned to benefit from favorable charter rates in the future. Despite this positive development, Performance Shipping’s shares, which are traded on the Nasdaq Stock Market, experienced a 1.9% decline to $0.78 by midday. 18-February-2020
Simeon Palios, the CEO of Athens-based New York-listed shipowner and operator Diana Shipping (DSX), has made recent management announcements that involve transitioning CEO positions to family members. This move has highlighted the unique nature of Diana Shipping (DSX) and its sister company, Performance Shipping (PSHG), which are Nasdaq-listed but also family-run businesses. The industry’s governance watchdog has taken notice of this situation, raising questions about the mixing of family and public ownership and its implications for corporate governance. Specifically, Simeon Palios plans to appoint his daughter, Semiramis Paliou, as the CEO-in-waiting at Diana Shipping (DSX) and his son-in-law, Andreas Michalopoulos, as the deputy CEO at Performance Shipping (PSHG). Michael Webber, the founder of a shipping corporate governance scorecard, expressed concerns that these appointments do not align with best governance practices. Michael Webber emphasized that when a publicly listed company is run as if it were private and corporate responsibilities are not taken seriously, it can negatively impact the market’s perception of the company. Michael Webber, who now heads his own firm, Webber Research & Advisory, has maintained the governance scorecard he established in 2016 and plans to release an updated version in the near future. In his previous rankings, Diana Shipping (DSX) ranked 51st out of 56 evaluated companies, indicating room for improvement in corporate governance. Performance Shipping (PSHG), formerly known as Diana Containerships, was not separately ranked but faced legal challenges related to alleged securities fraud. While concerns about governance practices are raised, it’s worth noting that the qualifications of the appointed successors are not in question. Semiramis Paliou has served as the Chief Operating Officer of Diana Shipping (DSX) since 2018, holding a similar position at Performance Shipping. Andreas Michalopoulos has been the Chief Financial Officer of Diana Shipping (DSX) since 2010. Diana Shipping (DSX) is recognized for its conservative chartering strategy and operates a fleet of 43 bulk carriers. 5-November-2019