Following what it called detailed consideration with its legal and financial advisors, Euronav last week rejected Frontline’s right to unilaterally terminate the two companies’ combination agreement signed on July 10, 2022.
It stated that Frontline had failed to provide a satisfactory reason for its decision to pursue termination – which apparently was because a full-blown merger between the two companies was no longer possible after Euronav shareholder CMB, controlled by the Saverys family, had acquired the 25% stake necessary to clock such a move.
Euronav pointed out that it has complied with its obligations under the combination agreement and had done everything in its power to make this transaction a success, and that its Supervisory and Management Boards are now 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.
The company said it would continue to execute on its value creation strategy and remains “well positioned to seize the opportunities offered by improving market conditions and maximize its value potential for all stakeholders”, adding that it would “continue to communicate and maintain a constructive dialogue with [all] its shareholders.”
