Frontline To Buy 24 VLCCs From Euronav For $2.35 Bln

(RTTNews) - Frontline Ltd.(FRO, FRO.L), a shipping company, said on Monday that it has signed a deal with Euronav NV (EURN), a crude oil tanker firm, to acquire modern ECO fleet of 24 VLCCs with an average age of 5.3 years for $2.350 billion.

"This transaction fortifies Frontline's position as one of the leading tanker companies in the public domain and is expected to be highly accretive to earnings and free cash flow per share," the company said in a statement.

The acquisition, expected to be closed in the fourth quarter, will be funded by selling Frontline's shares in Euronav to CMB NV and debt.

In connection with the acquisition, Frontline and Famatown Finance Limited have agreed to sell all their shares in Euronav, or 26.12 percent of the company's shares, to CMB for $18.43 per share.

Following the acquisition of Euronav shares from Frontline and Famatown, CMB will own 49.05 percent of Euronav.

The acquisition of an on-water fleet of 24 ECO VLCCs will raise Frontline's total fleet size to 89 vessels.

As part of the transaction, the arbitration action filed by Euronav in January following Frontline's withdrawal from their combination deal will be terminated without any cash settlement.