Posted on January 23, 2023
The drama following the collapse of the planned tanker mega merger of Euronav and John Fredriksen’s Frontline continues.
On Monday, the Saverys family demanded that Euronav call a special general meeting with an agenda proposing that the entire Euronav supervisory board be replaced by a slate of Saverys nominees.
Today, Euronav said that on January 17 it had filed “an application request for urgent interim and conservatory measures in relation to Frontline’s (NYSE: FRO & OSE: FRO) unilateral action in pursuing the termination of the combination agreement of July 10, 2022. Euronav is requesting to suspend such termination pending a determination on the merits pursuing primarily the specific performance of the combination agreement. Another request regarding such merits of Frontline having unilaterally terminated the Combination Agreement will be filed soon.”
Euronav went on to say that, “Following the acquisition of additional shares by Famatown Finance Limited …Frontline plc, Famatown Finance Limited, Hemen Holding Limited and Geveran Trading Co. Limited. could be qualified as a related party in the meaning of IAS24 [an international accounting standard]. As a precautionary measure the Supervisory Board has therefore taken the decision in relation to the initiation of proceedings against Frontline plc, Famatown Finance Limited, Hemen Holding Limited and Geveran Trading Co. Limited in accordance with the procedure provided for in article 7:116 of the Belgian Code of Companies and Associations.”
Frontline plc said today that it “confirms that it has received from Euronav NV an emergency arbitration request for urgent interim and conservatory measures following Frontline’s decision to terminate the combination agreement …. Frontline is currently analyzing this request with its legal advisors. Frontline once again confirms that its decision to terminate the combination agreement was entirely lawful.”