Tanker giants Euronav and Frontline in discussions to end their dispute


Euronav confirms that Frontline and CMB NV, its major shareholders, are in discussions on an integrated solution to what it calls the ‘strategic and structural deadlock’ in the company following Frontline’s calling off of its planned merger with Euronav in january this year.

Under the mooted transaction:
• CMB would acquire Frontline’s 26.12% stake in the Company for $18.43 per share, to be followed by a public mandatory share sale at the same price.
• Frontline would acquire 24 VLCC tankers from the Euronav fleet for $2.35 billion, subject to completion of the above-mentioned share purchase and to approval by shareholders voting at a Special General Meeting
• Euronav’s pending arbitration action against Frontline and affiliates over the aborted merger would be terminated conditional to the share sale.

Euronav says the discussions between the parties are well advanced but there can be no certainty that these discussions will lead to an agreement. The aforementioned is in any case subject to all necessary internal approvals of the involved parties. If the negotiations would result in a formal agreement, such agreement will be subject to customary competition clearance procedures and any required approval procedures with the financial market authorities in Belgium and the US.

As a result of press speculation about the above and resulting volatility of the Euronav share price, Euronav shares were suspended on Euronext Brussels.