CMB Euronav deal challenged in Belgium

FourWorld Capital Management and some of its managed funds filed a request with Belgium’s Market Court to try and force the offer price higher for outstanding shares in Euronav. 

CMB’s mandatory takeover bid was launched after a deal brokered in late 2023 to break deadlock between Euronav and Frontline over the future of Euronav. CMB acquired Frontline’s shares in Euronav, taking it over a threshold that triggers a mandatory takeover bid for the rest of the company’s shares.

According to CMB, FourWorld has requested that the Market Court recognise the offer price for Euronav shares as too low, alleging that the price does not account for “special benefits” Frontline would have been granted for its Euronav shares on top of the cash price paid by CMB. The request further calls for the authority to force CMB to adjust the price upward to account for the alleged special benefits, although a specific price is not mentioned.

The Belgium filing follows FourWorld lodging a complaint in New York in late February related to the offer materials released for the mandatory takeover bid in the US. The complaint seeks to block the offer in the US and CMB said Euronav has since released additional documents to address some of the points raised in the US complaint.

Related:Investor files to block CMB Euronav takeover

CMB maintained its position that the proceeding is without merit and it will continue to defend itself.

CMB's plan for Euronav is to reposition the company as a leader in green shipping under its CMB.TECH brand.