The board of tanker carrier Euronav, proposed merger partner of Frontline, counters the criticism posed by major stakeholder CMB, calling for shareholders to vote against CMB’s proposal at the upcoming AGM.
The battle lines between Euronav’s Supervisory Board and the Belgian tanker carrier’s largest shareholder, the Saverys family, are drawn even more sharply ahead of the carrier’s upcoming annual general meeting.
Euronav’s board now calls directly on shareholders to vote against a proposal by the Saverys family’s shipping company, CMB, to elect three board members, all put forward by CMB.
The Supervisory Board directly says that the three proposed board candidates neither are independent nor will look after the interests of all shareholders.
”The lack of independence of the CMB candidates would weaken the Board profile and threaten to bring conflicts of interest into the boardroom,” reads a stock exchange notice from Euronav.
These candidates would be unable to offer an unbiased opinion on any future scenario for Euronav.
Euronav’s Supervisory Board
”If elected to the Supervisory Board, these candidates would be unable to offer an unbiased opinion on any future scenario for Euronav.”
The boards at Euronav and Norwegian tanker operator Frontline agreed in Paril to merge their companies under the name Frontline and create the world’s largest crude oil tanker carrier.
But the merger is being blocked by Belgian shipping family Saverys, who have previously helped establish Euronav and been large shareholders in the carrier. Now, they are again.
Since Frontline’s owner, Norwegian-Cypriot shipping magnate John Fredriksen, last year started buying shares in Euronav, the Saverys family have started shopping for shares as well, for their own and borrowed money.
Today, the Saverys family own 16.49 percent of Euronav’s shares via CMB. Aside from the family having prepared for a regular contest in the board elections at Euronav, they have also floated another strategic plan for the carrier.
Proposal would ”destroy shareholder value”
The Saverys family aims to merge Euronav with CMB Tech, a part of CMB that develops ships able to sail on hydrogen and ammonia as well as infrastructure for distributing alternative, fossil-free fuels.
But Euronav’s Supervisory Board throws out this proposal, too, claiming that if it is carried out, it would ”most likely destroy shareholder value.”
The AGM looks set to become a dramatic affair as the proposed merger between Euronav and Frontline is not yet fully negotiated – although the boards of both tanker carriers have approved it.
The Saverys family’s three proposed candidates are Bjarte Boe, former director at companies such as Seadrill and current member of nomination committees at BW LPG, BW Offshore, BW Energy and Hafnia.
The second is Ludovic Saverys, who was previously on Euronav’s Supervisory Board and is chief financial officer at CMB. The third is Patrick De Brabandere, director at CMB and board member at CMB Tech.
Euronav’s AGM will take place on May 19.
