Euronav is asking for arbitration on Frontline resolution to stroll away from a deliberate tanker mega merger
In a press release launched in the present day, Euronav NV (NYSE: EURN & Euronext: EURN) says that, following additional detailed consideration with its authorized and monetary advisors, it’s “taking the opportunity to update its stakeholders on next steps,” following the January 9 announcement by John Fredriksen’s Frontline that it was pulling out of the deliberate mega merger between the 2 tanker firms.
“Euronav has determined that Frontline’s (NYSE: FRO & OSE: FRO) unilateral action in pursuing the termination of the combination agreement has no basis under the terms of the combination agreement between the two companies signed on July 10, 2022, and that Frontline failed to provide a satisfactory reason for its decision to pursue termination,” says the statement. “Euronav has complied with its obligations under the combination agreement and has done everything in its power to make this transaction a success.”
“The Supervisory and Management Boards are in the process of analyzing 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,” continues the assertion. “Euronav will proceed to execute on its worth creation technique and is nicely positioned to grab the alternatives supplied by bettering market situations and maximize its worth potential for all stakeholders.
“Euronav continues to communicate and maintain a constructive dialogue with its shareholders.”
