In a recent update to its stakeholders, Euronav determined that Frontline’s 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.
According to Euronav, Frontline failed to provide a satisfactory reason for its decision to pursue termination.
- Euronav has complied with its obligations under the combination agreement and has done everything in its power to make this transaction a success
Euronav said.
The Supervisory and Management Boards are now in the process of analysing 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.
Euronav will continue to execute on its value creation strategy and is well positioned to seize the opportunities offered by improving market conditions and maximize its value potential for all stakeholders
We remind that Frontline announced that it no longer pursues a combination between Frontline and Euronav, as Frontline has terminated the combination agreement it entered into with Euronav in this respect.
Frontline will also no longer seek a listing on Euronext Brussels, and has simultaneously with this notice published a separate notice withdrawing its intention to such voluntary conditional exchange offer.
The two companies announced the deal last year, aiming to create an oil tanker group with 146 vessels. Euronav had also received “a clear signal” from shareholders in support of its proposed deal.
However, Reuters reports that since the announcement of the planned merger, Euronav had clashed with its biggest shareholder Compagnie Maritime Belge (CMB), which tried to block it.
