“Euronav has assessed that Frontline’s unilateral action in pursuing the termination of the combination agreement has no basis under the terms of the combination agreement and that Frontline failed to provide a satisfactory reason for its decision to pursue termination,” Euronav said in a market update.
Euronav’s supervisory board said the decision to seek arbitration was in the best interests of Euronav.
Frontline confirmed that it received the request and is analysing it with legal advisors.
“Frontline once again confirms that its decision to terminate the combination agreement was entirely lawful,” said Frontline.
The latest request for arbitration is in addition to an earlier emergency arbitration request Euronav made “for urgent interim and conservatory measures” on January 17. A judgment in that first emergency request for arbitration is expected on February 7, Euronav said.
The earlier arbitration request is centered around the purchase of additional shares in Euronav by Famatown Finance Limited, a company owned by Frontline owner John Fredriksen. The additional shares purchased by Famatown Finance Limited combined with those held by Frontline plc, Hemen Holding Limited and Geveran Trading Co. Limited could make the Fredriksen-backed companies a related party, Euronav claimed.
Fredriksen now owns a 24.99% stake in Euronav, equal with CMB and its owners the Saverys family. Euronav is set to announce its 2022 fourth quarter and full year results on February 2.
Copyright © 2023. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.