October 20, 2023 | Industrials | Europe | Ended

Euronav / CMB: Deal Insight

On 9-Oct-23, Euronav, the Belgian oil tanker company, confirmed a significant development between its two major shareholders, Compagnie Maritime Belge (“CMB”, 22.93%) and Frontline (FRO US, 26.12%), whereby CMB will purchase the stake held by Frontline and will make a mandatory offer to Euronav’s minority shareholders. This brings an end to the uncertainty surrounding Euronav’s future after Frontline, which is under the control of Norwegian shipping magnate John Fredriksen, abandoned its $4.2bn merger with Euronav earlier this year. Euronav and Frontline had originally signed an agreement in July 2022 to create a vast global shipping business that stores and transports oil tankers. The deal would have resulted in Euronav shareholders owning 55% of the merged business, with Frontline shareholders holding the rest. However, Frontline called off the merger in January 2023, leading to Euronav initiating arbitration proceedings against Frontline. Now, with the new transactions in place, Euronav has confirmed that it will terminate its arbitration pursuit. This latest agreement entails that CMB will acquire Frontline’s 26.1% equity stake in Euronav for $18.43 per share and will, as a result, secure 53.0% of the target’s voting rights. Following this stake acquisition, CMB will ...

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