Euronav to Buy CMB.TECH for $1.15 Billion
Belgian tanker operator Euronav and its controlling shareholder CMB have entered into a share purchase agreement for the acquisition of 100% of the shares in cleantech maritime group CMB.TECH for $1.15 billion in cash.
Euronav said the transaction is part of its renewed strategy of diversification, decarbonization and accelerated optimization of the its current crude oil tanker fleet, driven by CMB.TECH’s ‘future-proof’ fleet of 106 low carbon vessels, of which 46 are under construction.
CMB.TECH builds, owns, operates and designs large marine and industrial applications that run on dual-fuel diesel-hydrogen and diesel-ammonia engines and monofuel hydrogen engines. It also offers hydrogen and ammonia fuel that it either produces or sources from external produces to its customers.
The acquisition will be financed from the cash proceeds of the sale of part of the VLCC fleet to Frontline, announced on October 9, 2023. The transaction includes $2.49 billion roll-over debt through bank, leasing and shipyard liabilities.
According to CMB and Euronav, the addition of CMB.TECH to their business will enable a flywheel strategy - positioning the group to tap into each step of the energy transition towards low carbon shipping, with a clear vision on value creation for its shareholders.
“After having reached an agreement with Famatown Finance Limited and Frontline plc on the strategic and structural deadlock for Euronav, we are pleased to announce another significant milestone for Euronav with the acquisition of CMB.TECH. This will allow the Company to rapidly and meaningfully execute its diversification and decarbonization strategy,” said Alexander Saverys, Euronav’s and CMB’s CEO.
In late December, CMB filed a takeover offer on all outstanding Euronav shares, following the completion of CMB’s acquisition of Euronav shares from Frontline/Famatown Finance. The offer price amounted to $18.43 per share, and was reduced to $17.86 per share, following the payment of a gross dividend of $0.57 per share on December 20, 2023.
According to CMB, it intends to maintain Euronav’s listing on Euronext Brussels and the New York Stock Exchange, and has no intention to launch a squeeze-out bid following the closing of the offer.
Given the company’s strong focus on decarbonization following implementation of its new strategy and the transaction, Euronav intends to propose to its shareholders to change its corporate name to CMB.TECH following completion of the transaction and the offer. The company added it plans to keep the ‘Euronav’ name as the brand name for its tanker division.
