What's Going On With Euronav and Frontline Stocks Thursday?

Belgian oil tanker and storage operator Euronav NV EURN confirmed that the second shareholder, Compagnie Maritime Belge (CMB), offered to acquire Frontline Plc's FRO 26.12% stake in the company for $18.43 per share, which a mandatory public offer at the same price will follow. 

The update and reports of Euronav going private led to a rally in Euronav and Frontline shares.

Euronav shares closed at $14.77 on Wednesday, implying a 25% premium on the purchase price.

The agreement would resolve the legal dispute initiated by Euronav against Frontline, a company where Norwegian shipping magnate John Fredriksen holds the majority of shares. This arbitration was a response to Frontline's decision to abandon a planned $4.2 billion merger with Euronav in January.

The merger would have created the world's largest publicly listed tanker company.

The 26.12% stake for sale in Euronav also includes Frontline-aligned Famatown, which Fredriksen also owns.

CMB, which currently owns 22.93% of Euronav shares with its affiliates, opposed the merger with Frontline.

The proposed transaction would also involve Frontline acquiring 24 VLCC tankers from the Euronav fleet for $2.35 billion.

Price Actions: EURN shares traded higher by 16.50% at $17.21 on the last check Thursday. FRO shares traded higher by 7.95% at $18.75.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.