Frontline, Euronav To Merge In $4.2 Bln Stock Deal

(RTTNews) - Frontline Ltd. (FRO) and Euronav NV (EURN) said that they have signed a term sheet on a potential stock-for-stock combination between the two companies, based on an exchange ratio of 1.45 FRO shares for every EURN share resulting in Euronav and Frontline shareholders owning about 59% and 41%, respectively, of the combined group.

According to the companies, the merger would create a leading global independent oil tanker operator, with a market capitalization of more than $4.2 billion based on market values of the respective companies as of 6 April 2022.

It is anticipated that Euronav will pay total dividends of up to 12 cents before the closing of the business combination with no impact on the exchange ratio.

If the merger materializes, the combined group would continue under the name Frontline and would continue to operate from Belgium, Norway, UK, Singapore, Greece and the US.

The combined group will be headed by Hugo De Stoop, CEO of Euronav, as the Chief Executive Officer. The Board of Directors of the combined group is expected to consist of seven members, including three current independent Euronav Supervisory Board members, two nominated by Hemen Holding Limited and two additional new independent directors.

Frontline's largest shareholder Hemen, and related companies owning shares in Euronav, have committed to support the potential transaction.