Euronav vs Frontline (part 2)

Did not realize there was some progress in the battle between the Saverys family and Johan Fredriksen + Frontline (FRO) over Euronav (EURN) and its fleet?

Fredriksen and FRO sell their shares to Saverys, who also buys out EURN minority partners. FRO then acquires 24 VLCCs vessels from EURN as part of the deal.

Was happy with the FRO price bounce today (10/05/23) - I trimmed my FRO position about 10% prior to reading of the deal. Still have to understand how the pieces fit together. What the above URL seems to be suggesting -
a. EURN plan on being taken private
b. Saverys acquire Johan Fredriksen & FRO’s stake of EURN at a fixed price, in exchange for 24 VLCCs from EURN
c. Does the share swap cover enough equity for the vessels?
d. Saverys also buy out the other EURN shareholders

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Euronav currently have a fleet of 41 VLCCs - delivered between 2007 and 2023. I wonder how they determine the vessels that stay with EURN, and those that transition over to FRO?

My guess is the last three are part of a Sale & Leaseback deal, and likely stay with EURN.

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10/09
The primary details are the same. The one point of clarification is the time-line for completion of the deal is in Q4 2023 (which is the current quarter, and the earliest the deal could have been completed).

There are a couple of additional steps

  • shareholder approval (assuming only majority is needed, the two largest shareholders have a combined 53%)
  • anti-trust approvals. Might need a review. But, on the VLCC side, there are over 900 vessels. While it is a jump, FRO getting to 46 VLCC
    will not change the market situation too much.

FRO lay out details, including identifying the 24 VLCCs (it seems to be the newest VLCCs in EURN’s fleet)
https://ml-eu.globenewswire.com/Resource/Download/56ceae90-d6e8-405f-9b6a-8097aa45797d

One small issue - EURN was one of the holdouts on scrubber install, so only the 9 newest vessels have scrubbers (installed during build). FRO will likely plan on scrubbers during the respective dry docks of all/most of the 15 vessels with no scrubber