John Fredriksen’s Frontline has cemented its exit from Euronav, which appointed Alexander Saverys as its chief executive in what he described as a new chapter for the tanker giant.
The deal, announced in October after it was first reported in TradeWinds, ends a dispute over the Belgian tanker owner with a solution that in effect divides the company.
The Saverys family’s Compagnie Maritime Belge comes out of the transaction with a 49% stake in Euronav and the opportunity to steer it in a greener direction, as was their stated goal in the fight with Fredriksen. Frontline comes away with Euronav’s 24 VLCCs, making it an even bigger tanker titan.
“It solves the strategic and structural deadlock in Euronav and allows a new board and new management team to write a new chapter for Euronav,” Alexander Saverys said.
“Our immediate focus will be to continue to run the company as the best-in-class tanker platform, whilst we will at the same time engage with the new supervisory board on how to execute a strategy around diversification and decarbonisation.”
Under the transaction, Frontline and Fredriksen’s private Famatown Finance sold all of their 13.7m Euronav shares to CMB for $18.43 apiece — a total of more than $252m for the 26.1% stake.
New York and Oslo-listed Frontline also paid $2.35bn for all of Euronav’s VLCCs.
New course charted
CMB, which also owns bulker owner Bocimar and green solutions firm CMB.Tech, is moving quickly to charter a new course for Euronav, with plans for a mandatory offer for the remainder of its shares.
The current management board has been axed.
Chief financial officer and interim CEO Lieve Logghe, investor relations boss Brian Gallagher, chief operating officer Alex Staring and chief people officer Thierry De Grieze had their board responsibilities terminated.
They will continue on an advisory basis until the end of December to ensure a smooth transition and handover.
Logghe stepped up to replace former CEO Hugo de Stoop, who left the company when the merger failed.
General counsel Sofie Lemlijn and general manager, Hellas Michail Malliaros will stay with the company but will no longer serve as management board members.
Saverys, CMB’s chief executive, is not the only member of the private Belgian company’s team to take a similar position at the Euronav.
Ludovic Saverys will serve as Euronav’s chief financial officer, the same job he has at CMB.
CMB board and executive committee member Michael Saverys, who was chartering director at Bocimar, was appointed Euronav chief chartering officer.
Maxime Van Eecke, chief commercial officer at CMB, takes the same job at Euronav, while Benoit Timmermans has been named chief strategy officer, the exact title he has at CMB.
Fredriksen, Grace Reksten Skaugen, Cato Stonex and Ole Henrik Bjorge resigned from Euronav’s supervisory board, which is led by chairman Marc Saverys.
The remaining three members brought in another trio, on the recommendation of the corporate governance and nominating committee.
Patrick Molis, the Compagnie Nationale de Navigation chairman who has been on the Euronav board before, and Catharina Scheers, who is owner, chairwoman and managing director of Fast Lines Belgium, will serve as independent directors.
Rounding out the list is Bjarte Boe, who has worked as a shipbroker and banker, and most recently served as a CMB.Tech board member.
Molis, Scheers and Boe were all proposed by the Saverys family as directors in 2022, but were rejected by Euronav as “non-independent” as the company tried to push through the Frontline merger
“After many months of uncertainty, we can finally announce that Euronav’s deadlock has been resolved,” said Marc Saverys. “We embark on a new journey for Euronav with energy, perseverance and passion.”
Frontline said all conditions for the deal had been met, including approval by Euronav shareholders and anti-trust authorities.
“The share sale successfully closed today and Frontline and Famatown are no longer shareholders in Euronav,” it added.
Transfer of the VLCCs will take place mainly in the fourth quarter of 2023, and partly in the first quarter of 2024.
As part of the overall agreement, the arbitration action filed by Euronav in January, following Frontline’s withdrawal from their 2022 combination agreement, has also been terminated.
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