Another day, another twist in the ongoing saga of the acrimonious failed merger between John Fredriksen’s Frontline and Euronav.
The Belgian shipowner said on Wednesday it had yesterday filed an application for emergency arbitration to halt what it called Frontline’s “unilateral” decision to tear up the combination agreement from last July.
The filing calls for “urgent interim and conservatory” measures in relation to the termination.
“Euronav is requesting to suspend such termination pending a determination on the merits, pursuing primarily the specific performance of the combination agreement,” the tanker owner said.
And the Hugo De Stoop-led company added: “Another request regarding such merits of Frontline having unilaterally terminated the combination agreement will be filed soon.”
A spokesman for Euronav told TradeWinds that the arbitration will take place in Belgium, due to the company’s domicile and the provisions of the combination agreement.
He added that it is difficult to give a timeline for the process, but legal authorities are aware it is an urgent request.
The company also claims that following Fredriksen’s acquisition of $74m more Euronav shares this week through his Famatown Finance, his group of companies could be considered a “related party”.
As a result, it has taken the precaution of beginning proceedings against all the Fredriksen companies involved in holding Euronav shares: Frontline, Famatown Finance, Hemen Holding and Geveran Trading.
The Belgian owner had signalled its intention to contest Frontline’s walk-out earlier this month after Euronav’s biggest shareholder, the Saverys family, blocked a full legal merger.
‘No basis’ for scrapping deal
“Euronav reiterates its determination that Frontline’s unilateral action in pursuing the termination of the combination agreement has no basis under the terms of the combination agreement and that Frontline failed to provide a satisfactory reason for its decision to pursue termination,” Euronav said.
The company added that, after careful consideration, the supervisory board, which is entirely composed of independent directors, considered the filing is to the “corporate benefit” of Euronav.
Frontline responded by saying it had received a request from Euronav for the arbitration.
“Frontline is currently analysing this request with its legal advisors. Frontline once again confirms that its decision to terminate the combination agreement was entirely lawful,” the Fredriksen company added.
The Saverys family has this week requested a shareholders’ meeting within three weeks to replace the supervisory board with its own candidates as it seeks to address the future strategy of Euronav.
