Euronav takeover by CMB subject to court challenges in US and Belgium

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Euronav has released a statement this week saying that it has been informed that certain funds managed by FourWorld Capital Management LLC have now also filed a request with the Market Court in Belgium in connection with CMB’s Belgian offer for the shares of Euronav. This follows a complaint that was filed by FourWorld in the United States District Court for the Southern District of New York in connection with majority shareholder CMB’s US takeover bid for the shares of the Euronav on 26 February.

Euronav says that it is not involved in this complaint by FourWorld, holder of some 2% of its shares, that “seeks mainly for CMB to adjust the bid price taking into account alleged special benefits that would have been granted to Frontline on top of the cash purchase price paid by CMB for its shares of Euronav.”

CMB reacted in a statement to the original US complaint, saying that it believes the suit to be “without merit” and that it intends to vigorously defend itself, with investors to be kept informed. It claims the transactions concerning the ending of arbitration proceedings between Euronav and Frontline (over their aborted merger) which involved the sale of 24 Euronav VLCCs to Frontline in return for Frontline ceding its stake in Euronav, and CMB’s subsequent sale of CMB.TECH to Euronav, “were on arms’ length terms and conditions and that the sale prices were fair to Euronav and its shareholders.”

Euronav furthermore takes the opportunity to notify investors that in order to address some of the points raised in the complaints made both in the US and Belgium, it has made public on its website some further supporting documentation, including the annexes to the
advice of the Committee of independent members of Euronav’s Supervisory Board.

An in-depth article detailing the failed Euronav/Frontline merger and proposed CMB buyout of Euronav can be found in the latest issue of SMI magazine available here: https://shipmanagementinternational.com/smi-issues/

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