Is the battle for Euronav nearing an end?
Written by Nick Blenkey
Image: Euronav
The Saverys family and John Fredriksen look to be nearing a resolution to their long running battle for control of the world’s largest NYSE-listed oil tanker operator, Euronav NV (NYSE: EURN).
Both Euronav and John Fredriksen-controlled Frontline today released statements confirming that Frontline and the Saverys family’s CMB NV are in discussions on an integrated solution to the strategic and structural deadlock in Euronav.
The potential transaction has the following interdependent elements:
- CMB would acquire the 26.12% stake in Euronav held by Frontline and Fredriksen-afilliated Famatown for $18.43 per share to be followed by a public mandatory offer at same price.
- Frontline would acquire 24 VLCC tankers from the Euronav fleet for $2.35 billion, subject to completion of the above-mentioned share purchase and to approval by shareholders voting at a Special General Meeting. This option requires the application of the related party procedure under Belgian law.
- Euronav’s pending arbitration action against Frontline and affiliates would be terminated, conditional on the share sale.
Both parties say that discussions are well advanced, that there can be no certainty that they will lead to an agreement and that any agreement would be subject to a range of approvals and clearances.
Shares in Euronav rose to $17.29 (a 17.6% gain) when trading on the New York Stock Exchange closed.
This battle for Euronav all started back on April 7, 2022 when it then seemed a tanker mega merger was in the works. The next day, the Saverys family expressed their displeasure.
What was that line about operas and fat ladies singing?
