The tanker shipowner Frontline confirms today that Frontline, CMB NV and Euronav, are in discussions on an integrated solution to the strategic and structural deadlock in Euronav.
The owner Frontline has high expectations this year as expects to acquire a modern fleet of 24 VLCC tankers from the Euronav fleet for $2.35 billion.
The potential deal is subject to completion of the share purchase and to approval by shareholders voting at a special general meeting of Euronav. This transaction requires the application of the related party procedure under Belgian law.
In accordance with the announcement, Frontline and Famatown will agree to sell all their shares (representing 26.12% of Euronav’s issued shares) in Euronav to CMB for $18.43 per share, to be followed by a public mandatory takeover at the same price.
Furthermore, Euronav’s pending arbitration action against Frontline and affiliates would be terminated conditional to the share sale.
The company claims that Frontline will fully finance the acquisition through the sale of Frontline’s shares in Euronav to CMB and an attractive long term debt package.
The news came to light today as Euronav gave to the press a statement which is actually a response to recent “press speculation about a possible transaction involving two of Euronav’s largest shareholders, Frontline plc and CMB NV leading to volatility of the Euronav share price, and suspension of the Euronav shares on Euronext Brussels,” as Euronav said in its release.
The discussions between the parties are well advanced, as both parties Euronav and Frontline confirm, but there can be no certainty that these discussions will lead to an agreement.
Both companies noted today that “The aforementioned is in any case subject to all necessary internal approvals of the involved parties. If the negotiations would result in a formal agreement, such agreement will be subject to customary competition clearance procedures and any required approval procedures with the financial market authorities in Belgium and the U.S.”
