Photo credit: Frontline

Euronav following further detailed consideration with its legal and financial advisors, rejects Frontline´s right to terminate combination agreement.

The Antwerp-based Euronav said today in a statement that “the supervisory and management boards are in the process of analysing the company’s options, and will take appropriate action to protect and preserve the rights and interests of Euronav and its stakeholders, including but not limited to potential litigation and/or arbitration”.

Furthermore Euronav highlights the fact that “Frontline’s unilateral action in pursuing the termination of the combination agreement, has no basis under the terms of the combination agreement, between the two companies signed on July 10, 2022, and that Frontline failed to provide a satisfactory reason for its decision to pursue termination.”

As it is mentioned by the company, Euronav has complied with its obligations under the combination agreement and has done everything in its power to make this transaction a success.

It is worth mentioning that Frontline plc has announced on Monday that will no longer proceed with the merger with Euronav. The two companies in July 2022, have signed a combination agreement to create a leading global independent oil tanker operator, as it was stated at that time by Frontline.

Frontline plc, formerly Frontline Ltd., announces that it no longer pursues a combination between Frontline and Euronav. Frontline has terminated the combination agreement it entered into with Euronav in this respect.

As it is mentioned in the statement, “Frontline will not make a voluntary conditional exchange offer for all outstanding Euronav shares. Frontline will also no longer seek a listing on Euronext Brussels. Frontline has simultaneously with this notice published a separate notice withdrawing its intention to such voluntary conditional exchange offer”.

Mr. Lars H. Barstad, CEO of Frontline said: “We regret that we could not complete the merger as envisaged in July 2022, as that would have created the by far largest publicly listed tanker company. At the same time, both companies have independently very large fleets of crude oil and product tankers, and are already enjoying economies of scale as evidenced by our respective recent financial reports. Frontline will with its efficient operations continue to capture value as this cycle unfolds, and remain focused on maximizing dividend capacity per share.”

Source: Euronav and Frontline