Belgium’s Euronav on Monday mentioned that its two main shareholders CMB and Frontline have reached a deal that may see CMB take management of the oil tanker firm and purchase its remaining shares.
The deal ends uncertainty over Euronav’s future, after peer Frontline – managed by Norwegian-born transport tycoon John Fredriksen – in January scrapped a $4.2 billion merger plan that may have created the world’s largest publicly-listed tanker firm.
That resolution had led Euronav to launch arbitration motion towards Frontline. On Monday, it mentioned this motion can be terminated.
Compagnie Maritime Belge (CMB) will purchase Frontline’s 26.12% stake in Euronav for $18.43 per share and personal 53% of voting rights, after which it would launch a takeover for all excellent shares.
Euronav’s shares have been up about 3% as of 0745 GMT.
As a part of the settlement, Frontline will purchase 24 VLCC tankers from Euronav for $2.35 billion.
Euronav mentioned it expects the deal, which is pending shareholder and anti-trust approvals, to shut within the fourth quarter.
(Reuters – Reporting by Olivier Sorgho; Editing by Emelia Sithole-Matarise)