Belgian tanker owner Euronav has called another special shareholders meeting to try to force through a reduced share buyback plan.
Investors will vote on 9 April after they rejected a scheme last month that would have seen the board authorised to acquire up to 20% of its stock, which would be worth €358m ($399m), based on its current market capitalisation of €1.79bn.
This has now been cut to 10% or around $199m to address shareholders' concerns.
"As this authorisation was rejected at the extraordinary general meeting of 20 February 2020, the supervisory board wishes to clarify its motives for resubmitting this request to its shareholders," Euronav said.
The tanker owner added that the scheme will not be used by the supervisory board as an "anti-takeover defence".
The idea is to return surplus capital to shareholders, increasing earnings per share or providing stock for equity compensations plans.
The board believes that share buybacks creates long term value for "all stakeholders", it said.
Five-year plan
Euronav needs a vote of 75% in favour to carry the day.
If fewer than half the shareholders turn up, the company will call another meeting on 20 May.
Any buybacks would take place over five years.
The company is already returning cash to shareholders more regularly by switching to quarterly dividends following a strong fourth quarter.
There will be a fixed element of $0.03 per share, while it retains the right to pay out 80% of earnings.
The VLCC and suezmax owner recorded the highest quarterly rates since 2008 in the fourth quarter, with crude carrier fundamentals also looking strong for 2020, it said.
Net profit in the final three months of 2019 was nearly $162m, up from just $280,000 in the same period of 2018.
Revenue jumped to $355m from $236m as daily earnings for some spot VLCCs topped $200,000 due to disruptions caused by Middle East tanker attacks and US sanctions against Cosco companies.
