The Saverys family’s mandatory offer for the rest of Belgian tanker owner Euronav has run into potential legal trouble in the US.
The clan’s Compagnie Maritime Belge shipping company launched a mandatory bid for the remaining shares in the VLCC and suezmax specialist earlier in February, following a deal to buy Frontline’s slice that lifted its ownership to 57%.
New York and Brussels-listed Euronav said on Tuesday it had been told that funds managed by FourWorld Capital Management had filed a complaint in the District Court for the Southern District of New York.
The complaint alleges, among other things, that CMB violated US law by “disseminating materially false and misleading offering materials” relating to the US offer.
Investment banker John Addis’ FourWorld is seeking an injunction to stop CMB from completing the takeover, as well as unspecified damages.
Euronav added it is not involved in these proceedings.
FourWorld is an SEC-registered investment adviser focusing on “event-driven investment opportunities with particular focus on tax, legal and regulatory catalysts”, the owner said.
Euronav is merging with CMB.Tech, the family’s clean shipping company, and is paying $17.86 for Euronav’s shares.
CMB said FourWorld has recently increased its stake in Euronav from just under 1% to 2.41% by acquiring at least 3.13m shares for a total price of $55.8m.
‘Without merit’
The owner added it believes that the suit is “without merit” and intends to vigorously defend it.
CMB said the sale of 24 VLCCs to Frontline and the CMB.Tech merger were carried out at “arms’ length terms” at fair prices.
“These transactions were approved by the independent members of Euronav’s supervisory board and supported by an overwhelming majority of shareholders months ago,” the company added.
This was after FourWorld’s representative had the opportunity to raise the same objections at Euronav’s recent shareholder meetings, during which the supervisory board provided detailed responses, CMB explained.
