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Wednesday, August 10, 2022

Oil Tanker Owners Frontline and Euronav Sign Merger Deal

Maritime Activity Reports, Inc.

July 13, 2022

© Björn Wylezich / Adobe Stock

© Björn Wylezich / Adobe Stock

Frontline and rival Euronav have signed an all-stock merger deal to create a market-leading oil tanker group with 146 vessels including 68 very large crude carriers (VLCCs), the companies said on Monday.

The firms, which expect the merged company to have a market capitalization of more than $4 billion and the merger to generate synergies of at least $60 million a year, first announced their intention to merge on April 7. 

Shares in Oslo-listed Frontline, the smaller of the two but after which the combined group is to be named after, will be exchanged into Brussels-listed Euronav shares at a ratio of 1.45 to 1.

The combined company will be held roughly 55% by existing Euronav shareholders and 45% by existing Frontline shareholders, assuming all Euronav shares are tendered in the tender offer.

Frontline and its Famatown Finance Limited currently already own 18.8% of the total outstanding shares in Euronav, it said.

(Reuters - Reporting by Victoria Klesty, editing by Gwladys Fouche)

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