Euronav Says Shareholders CMB and Frontline Reach Deal on Acquisition
Belgium's Euronav on Monday said that its two major shareholders CMB and Frontline have reached a deal that would see CMB take control of the oil tanker company and buy its remaining shares.
The deal ends uncertainty over Euronav's future, after peer Frontline - controlled by Norwegian-born shipping tycoon John Fredriksen - in January scrapped a $4.2 billion merger plan that would have created the world's largest publicly-listed tanker company.
That decision had led Euronav to launch arbitration action against Frontline. On Monday, it said this action would be terminated.
Compagnie Maritime Belge (CMB) will buy Frontline's 26.12% stake in Euronav for $18.43 per share and own 53% of voting rights, after which it will launch a takeover for all outstanding shares.
Euronav's shares were up about 3% as of 0745 GMT.
As part of the agreement, Frontline will acquire 24 VLCC tankers from Euronav for $2.35 billion.
Euronav said it expects the deal, which is pending shareholder and anti-trust approvals, to close in the fourth quarter.
(Reuters - Reporting by Olivier Sorgho; Editing by Emelia Sithole-Matarise)