Euronav dismisses combination fears raised by Alex Saverys

The board at Euronav have dismissed a letter sent earlier this week from Alexander Saverys, the CEO of Compagnie Maritime Belge, calling for an end to the proposed combination agreement with tanker rival Frontline.

Saverys had argued that now that his company holds a 25% stake, capable of blocking a full-on merger, a combination – as approved by both the Frontline and Euronav boards – would be “unworkable and value-destructive”.

Euronav’s board responded yesterday, repeating the case for economies of scale brought by bringing these two tanker giants together.

“The exchange offer, which is expected to be launched in the first quarter of 2023, aims at combining the two companies so that they can act as one group where Frontline will be the parent and Euronav a majority-controlled subsidiary,” Euronav stated, stressing the scale benefits from the transaction.

In order to successfully complete the exchange offer, Frontline will need to accumulate a minimum of 50% +1 share of the current outstanding capital. Once Frontline takes control of Euronav, the two companies will be acting as one group, the board at Euronav insisted, something that Saverys questioned earlier in the week.

Up next in this year’s greatest tanker saga, on December 20 Frontline shareholders will vote on a domicile change from Bermuda to Cyprus.