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Investor files to block CMB Euronav takeover

An investor is attempting to prevent CMB’s takeover of US-listed Euronav stocks with a complaint filed in New York.

FourWorld Capital Management filed a complaint against CMB on February 27 in the US Southern District of New York court through a series of its funds.

The complaint relates to CMB’s offer to buy all of the outstanding shares in Euronav, specifically for those held by US shareholders. CMB’s mandatory takeover bid for all of Euronav’s outstanding shares is the result of a deal struck in late 2023 to break a deadlock between Euronav and Frontline over the future of Euronav. The current plan would see CMB take over the company, rename it, and pursue a strategy focussed on green shipping.

FourWorld alleges that CMB disseminated “materially false and misleading offering materials relating to the US Offer... and the Belgian Prospectus” and seeks an injunction against the completion of the US offer as well as an unspecified amount in compensatory and punitive damages.

FourWorld told Seatrade Maritime News it had no further comment beyond the contents of its complaint.

In a response, CMB said the suit was without merit and stated its intention to vigorously defend against it.

“These transactions were approved by the independent members of Euronav’s supervisory board and supported by an overwhelming majority of shareholders months ago, after FourWorld's representative had the opportunity to raise the same objections at Euronav's recent shareholder meetings at which Euronav’s supervisory board provided detailed responses,” said CMB.

In its amended offering document, CMB said the outcome of the litigation could not be predicted with certainty, and that additional demands made or complaines filed in connection with the offer.