US-listed Greek capesize bulker specialist Seanergy Maritime is taking steps to defend itself against fellow shipowner George Economou, urging shareholders to dismiss his proposals and nominees to the company’s board.
Economou, who, via his affiliated investment vehicle, owns about 9% of Nasdaq-listed Seanergy, launched a proxy fight in June, naming John Liveris and Georgios Kokkodis as his board picks just a few months after suing the company, its boss and chairman Stamatis Tsantanis and other directors for allegedly seizing control of the company by creating “super-voting” shares.
The Seanergy board comprises five directors, four of whom are independent. Economou is also proposing “no-confidence” votes against Tsantanis along with the two remaining directors Christina Anagnostara and Elias Culucundis.
Making its case in a letter to shareholders, the Athens-based company, which operates a fleet of 19 ships on a fully delivered basis, claimed that if Economou succeeds in his campaign, he is likely to follow the same playbook as he did at once listed DryShips and Ocean Rig, where billions of dollars of shareholder value had been destroyed.
“At Seanergy, he has put forward two underqualified nominees who have both been associated with facilitating Economou’s prior self-dealing and value destruction,” the company noted.
Liveris is the former chairman of OceanFreight and an ex-board member of Ocean Rig, while Kokkodis also served on the Ocean Rig board and DryShips. Both were also previously Economou’s candidates for Diana Shipping spinoff OceanPal.
“Economou’s blatant attempt to seize effective control over the company by replacing the entire board with his own nominees and their appointees would be detrimental to Seanergy’s ability to continue to deliver outperformance and would negatively impact shareholder value,” the company said in a release.
Seanergy also warned shareholders that Economou’s actions are similar to the “coercive tactics” he has deployed at other shipping companies over the last year, including US-listed Greek tanker owner Performance Shipping, where a legal battle and a tender offer for the company’s all outstanding shares is still active.
“While each of these situations may be different, the underlying story is the same: Economou deploying coercive tactics to gain substantial influence or control of these public companies or ransoming them for a short-term payout that benefits nobody but himself,” Seanergy wrote in a letter to shareholders.
Following the footsteps of US bulker owner Genco, which had also clashed with Economou, Seanergy launched the “VoteSeanergy website, where it, among other things, cautions shareholders against Economou’s “record of value destruction”.
The company’s previous attempts to engage with Economou had been unsuccessful, and Seanergy said that he had not put forward any plans or proposals for the company. Seanergy holders will have their say at the annual meeting scheduled for November 4.
