Last week it became clear: John Frederiksen’s Frontline company is merging with Belgian rival Euronave.
The combined company will continue to use the Frontline name, with operations in Belgium, Norway, the United Kingdom, Singapore, Greece and the United States, and will have an estimated market value of more than $4.2 billion, it is reported.
But plans and the merger did not go well with Euronav’s largest shareholder, CMB, which is owned by the Belgian shipping family Saverys. Now the shipping heir Alexander Saveries speaks, and warns that he will stand in opposition. Although the board of directors of both Frontline and Euronav have approved the merger, Saverys believes that Euronav shareholders will not benefit from the agreement and will not receive anything. As per the merger agreement, Euronav shareholders will receive 1.45 Frontline shares for each Euronav share they own.
It’s British reports financial times.
The Saverys family owns just over 13 percent of the Antwerp-based company.
– What did Euronave get out of this? no thing. In our opinion, Euronav is not going in the right direction. According to FT, we don’t want the company we were involved in building to go in the wrong direction.
Saverys assures that neither Euronav nor Frontline has come ashore with the much-needed support for shareholders. His alternative plan is to build up opposition among other investors, to increase the family’s ownership stake and participate in a plan where the shipping company in the future will not have to depend on oil transportation.
Soon after the merger became popular, Savery’s company, CMB, indicated that it was not satisfied with the plans.
– CMB questions Euronav’s current strategy, which is focused exclusively on transporting crude oil in a world where decarbonization is critical, the company says, according to trade winds.
– We are convinced that the plan we will offer provides the best value, in the short and long term, for our shareholders, Euronav wrote in a stock exchange announcement last week. (Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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