The Boards of Euronav and Gener8 Maritime announced that they have reached an agreement on a merger for the entire share capital of Gener8, which will become a whollyowned subsidiary of Euronav.
This merger will create an independent large crude tanker operator, which will include:
- 75 crude tankers, including 44 VLCCs and 28 Suezmax crude tankers, representing over 18 million DWT in the aggregate.
- Combined Entity balance sheet assets of over USD 4 billion.
- Estimated pro-forma market capitalization of approximately USD 1.8 billion based on Euronav’s closing price of USD 8.10 per share on 20 December 2017.
- Marked-to-market leverage of less than 50% for the Combined Entity.
- A liquidity position estimated at more than USD 750 million, including cash on hand and undrawn amounts available under existing credit facilities.
The merger is now subject to the approval of Gener8’s shareholders and some of its lenders.
Commenting on the merger, Carl Steen, Chairman of Euronav stated: “The merger between Euronav and Gener8 is expected to deliver real value for both sets of shareholders. The financial strength of the Combined Entity together with a strong leadership team will make it well placed to navigate the tanker cycle”.
From his part, Paddy Rodgers, CEO of Euronav noted that “this transaction marks an exciting development for Euronav. The merger creates the leading tanker company which is better placed to serve the needs of our customers and support our partners.”
Moreover, a third-party tanker owner agreed to purchase six VLCCs from the newly formed entity, after the merger closes, at a price of $434 million.
