Belgian tanker operator Euronav and its controlling shareholder CMB have entered right into a share buy settlement for the acquisition of 100% of the shares in cleantech maritime group CMB.TECH for $1.15 billion in money.
Euronav mentioned the transaction is a part of its renewed technique of diversification, decarbonization and accelerated optimization of the its present crude oil tanker fleet, pushed by CMB.TECH’s ‘future-proof’ fleet of 106 low carbon vessels, of which 46 are below development.
CMB.TECH builds, owns, operates and designs giant marine and industrial purposes that run on dual-fuel diesel-hydrogen and diesel-ammonia engines and monofuel hydrogen engines. It additionally gives hydrogen and ammonia gas that it both produces or sources from exterior produces to its prospects.
The acquisition will probably be financed from the money proceeds of the sale of a part of the VLCC fleet to Frontline, introduced on October 9 2023). The transaction consists of $2.49 billion roll-over debt via financial institution, leasing and shipyard liabilities.
In keeping with CMB and Euronav, the addition of CMB.TECH to their enterprise will allow a flywheel technique – positioning the group to faucet into every step of the power transition in the direction of low carbon transport, with a transparent imaginative and prescient on worth creation for its shareholders.
“After having reached an settlement with Famatown Finance Restricted and Frontline plc on the strategic and structural impasse for Euronav, we’re happy to announce one other important milestone for Euronav with the acquisition of CMB.TECH. It will permit the Firm to quickly and meaningfully execute its diversification and decarbonization technique,” mentioned Alexander Saverys, Euronav’s and CMB’s CEO.
In late December, CMB filed a takeover supply on all excellent Euronav shares, following the completion of CMB’s acquisition of Euronav shares from Frontline/Famatown Finance. The supply value amounted to %18.43 per share, and was diminished to $17.86 per share, following the cost of a gross dividend of $0.57 per share on December 20, 2023.
In keeping with CMB, it intends to keep up Euronav’s itemizing on Euronext Brussels and the New York Inventory Alternate, and has no intention to launch a squeeze-out bid following the closing of the supply.
Given the corporate’s robust concentrate on decarbonization following implementation of its new technique and the transaction, Euronav intends to suggest to its shareholders to alter its company title to CMB.TECH following completion of the transaction and the supply. The corporate added it plans to maintain the ‘Euronav’ title because the model title for its tanker division.
