With reference to the stock announcement by Euronav BV (“Euronav”) on 5 October 2023, Frontline plc confirms that Frontline, CMB NV (“CMB”) and Euronav, are in discussions on an integrated solution to the strategic and structural deadlock in Euronav.
The potential transaction, which is subject to board approval and documentation, comprises the following interdependent elements:
Frontline would acquire a modern fleet of 24 VLCC tankers from the Euronav fleet for $2.35 billion, subject to completion of the below-mentioned share purchase and to approval by shareholders voting at a Special General Meeting of Euronav. This transaction requires the application of the related party procedure under Belgian law.
Frontline and Famatown will agree to sell all their shares (representing 26.12% of Euronav’s issued shares) in Euronav to CMB at a price of USD 18.43 per share to be followed by a public mandatory takeover at the same price.
Euronav’s pending arbitration action against Frontline and affiliates would be terminated conditional to the Share Sale.
Subject to documentation, Frontline will fully finance the acquisition through the sale of Frontline’s shares in Euronav to CMB and an attractive long term debt package.
The discussions between the parties are well advanced. However, there can be no certainty that these discussions will lead to an agreement. The aforementioned is in any case subject to all necessary internal approvals of the involved parties. If the negotiations would result in a formal agreement, such agreement will be subject to customary competition clearance procedures and any required approval procedures with the financial market authorities in Belgium and the U.S.