Simeon Palios has further consolidated control over Diana Shipping.
In addition to his role as chairman and chief executive and controlling nearly a quarter of the New York-listed bulker owner's common shares, the Greek shipping magnate can now cast an additional 10.6 million votes on any company matter, Diana has disclosed
According to a Securities and Exchange Commission filing, Palios was sold 10,675 new preferred shares for $1.06m on 31 January. Each one of those preferred shares entitles him to cast 1,000 votes on any matter up for shareholder vote.
According to Diana Shipping's most recent annual report, Palios already owned 24.9 million of the company's 103.7 million outstanding shares. Including these new shares, Palios would control more than a third of all votes cast in company matters.
In its filing, the company said the new shares were necessary to keep it in compliance with clauses in debt facilities requiring Palios to have a minimum level of voting power.
The shares were priced at 3% of Diana's common shares' 10-day weighted average for the period ending 20 November, when the issuance was approved.
Palios' stake is by far and away the largest in Diana Shipping, more than double second-place Franklin Templeton Investments' 10.7% stake.
No other shareholder owns more than 10%, with Kopernick Global Investors and 12 West Capital Management owning 5.69% and 4.57% respectively.
To get more than a third of voting power via common shares, an investor would have to spend more than $102m.
The shares give Palios no dividend or liquidation rights and cannot be transferred without the company's approval, except to his relatives. The company said in its filing an unnamed independent third party deemed the transaction was "fair from a financial point of view."
