Shipping tycoon John Fredriksen has added to his Euronav holding in a move that brings him closer to making a takeover offer for the company.
Six months on from pulling the plug on a fleet combination deal with his Oslo-listed tanker company Frontline, Fredriksen now owns 28.48% of the Belgian VLCC and suezmax operation, up from around 26.5% previously and just short of the 30% level that would trigger a mandatory offer.
A securities filing revealed Fredriksen’s Famatown Finance has built its stake to 21.71%, with Frontline’s holding unchanged on 6.77%.
The market now waits to see whether this is a further bet on tanker rates or a precursor to a bid to achieve a majority holding that would allow the fleet tie-up with Frontline.
A full legal merger needs more than 75% ownership and cannot be achieved, while rival shareholder the Saverys family has 25%.
The question is why would Fredriksen now pursue the fleet unification he rejected in January?
Analysts have speculated that the company could eventually be split between Fredriksen and the Saverys’.
Famatown’s share purchases in Euronav have cost $527.2m since 2021.
Another huge outlay would be needed to reach more than 50%.
The Euronav stock closed up 5% at $15.96 in New York on 2 June, making Fredriksen’s overall investment worth $920m.
The extra 2% of Euronav could have cost around $64m.
CEO departed
The fallout from the failed merger cost Euronav chief executive Hugo De Stoop his job last month as the two big shareholder groups seek a way forward for the company after the failed Frontline merger.
Chief financial officer Lieve Logghe is running the company on an interim basis.
Fredriksen and ally Cato Stonex joined the Euronav board in March. The tycoon then moved his stake up from 25%.
The Saverys family want to diversify Euronav into bulkers and container ships as part of a decarbonisation drive.
Fredriksen is also a major shareholder in US tanker company International Seaways and is agitating for a bigger say in how that company is run.
