Euronav and Frontline have come to a deal in the long-simmering battle for control of one of the jewels in the European tanker crown.
Two years after John Fredriksen-controlled Frontline first initiated a bidding war for Antwerp-based Euronav the deal on the table sees Frontline walking away with 24 Euronav VLCCs for $2.35bn in exchange for Fredriksen backing away from his aggressive takeover manoeuvres.
Under the agreement, which still needs the approval of shareholders, Frontline and Fredriksen’s investment vehicle Famatown will agree to sell all their shares, representing 26.12% of Euronav’s issued shares, in the Belgian firm to CMB at a price of $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. Subject to documentation, Frontline will fully finance the acquisition through the sale of Frontline’s shares in Euronav to CMB and what was described as an “attractive long-term debt package.”
According to statements from the two companies, the discussions between the parties are well advanced, however, both claimed that there can be no certainty that these discussions would lead to an agreement.
If negotiations result in a formal agreement, it will be subject to customary competition clearance procedures and any required approval procedures with the financial market authorities in Belgium and the U.S.
