Frontline Euronav arbitration could take “several months, if not years”.

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The arbitration to settle whether Frontline was within its rights to terminate its merger deal with Euronav could take "several months if not years" to settle, according to Euronav.

Euronav also claimed that CMB was trying to take control of Euronav cheaply, without paying the usual premium for a takeover or presenting a clear strategy for its future.

The company held a call for investors on February 27 to present its position on the proposed changes to Euronav by shareholder CMB and the reasons for its stance. The topic revolves around the merger of Frontline and Euronav, which Frontline completed in January. CMB opposes the merger while Euronav supports it.

CMB aims to replace the entire Euronav Board of Directors with five appointments of its own choice; In response, Euronav has proposed a board composed of its current five members plus two representatives nominated by CMB and two others by Famatown, a front-line close Euronav shareholder with a 25% stake in Euronav.

Euronav CEO Hugo de Stoop worked through the company’s objections to the CMB proposals and disputed some of CMB’s claims. Euronav’s board is pro-growth rather than committed to the idea of ​​a merger with Frontline, de Stoop said, and the recent “stormy times” for Euronav, which CMB is trying to resolve, have come from CMB’s opposition to the Frontline merger, he claimed .

CMB also said Euronav is trying to force a merger through its arbitration with Frontline, while Euronav says it wants to know whether Frontline had the right to terminate the merger agreement. The summary arbitration, dismissed earlier this month, has not reached a judgment on the merits of the case, de Stoop said, and the ongoing arbitration on the facts of the matter could take “months, if not years.”

De Stoop accused CMB of trying to take over Euronav through the backdoor, saying CMB’s plans for Euronav were vague and the decarbonization trajectory lacked details. Regarding CMB’s strategy and intentions, de Stoop quoted a Feb. 15 call from CMB investors:

“Analyst: I guess from your perspective you just can’t or don’t want to say anything about how you’re going to create that value at this point. I think the question really is, how do you add value?”

“Alexander Saverys, CEO of CMB: Give us a seat on the board. And of course we hope to be represented and we will get involved very soon to show how value can be created.”

Investors will vote on the CMB proposals at a shareholders meeting on March 23; Euronav encouraged all shareholders to exercise their voting rights on the proposals at the meeting, which include the replacement of the entire board of directors.

Source: News Network

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