By David Sachs
Euronav said its two top shareholders are working on a deal that would split up its oil tanker fleet, ending speculation that sent its stock tumbling earlier this week.
The Belgian-based shipping company said that Frontline aims to sell its 26.12% stake to Compagnie Maritime Belge for $18.43 a share, which would be followed by a mandatory public offer. Frontline would acquire 24 oil tankers from the Euronav fleet for $2.35 billion as part of the deal, which is still being negotiated, Euronav said Thursday.
“The discussions between the parties are well advanced,” Euronav said. “However, there can be no certainty that these discussions will lead to an agreement.”
Euronav’s confirmation of the talks comes after speculation of a deal sent the company’s shares downward earlier this week.
Euronav’s pending arbitration action against Frontline and affiliates would be terminated if the share sale goes through, it said.
Write to David Sachs at [email protected]
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