Euronav again faces legal challenge from US investment group

A US investment group called FourWorld Capital Mangement (FourWorld) is again attempting to stymie a takeover of Euronav by the Saverys family owned Compagnie Maritime Belge (CMB). 

FourWorld has, according to a statement from Euronav, filed a claim with the Enterprise Court in Antwerp, Belgium seeking to abrogate the fleet carve up and acquisition of Euronav by CMB in which several Euronav VLCCs were taken by funds held by shipping magnate John Fredriksen. Prior to the agreement between Mr Fredriksen’s holdings and those of the Saverys family, the two camps had engaged in a prolonged battle for control of Euronav, through tit-for-tat stock buy-ups.

The deal between the two parties – which Euronav has called the "integrated solution for the strategic and structural deadlock within Euronav" – closed on 15 March 2024 after US and Belgian courts dismissed cases brought by Four World in connection with CMB’s US- and Belgian-based offers to purchase all outstanding ordinary shares of Euronav from shareholders. With the deal closed, CMB currently controls more than 88% of Euronav, which in turn took over CMB subsidiary CMB.Tech.

FourWorld’s latest challenge is, according to the language in Euronav’s investor notice, seeking to overturn all of the transactions made, going all the way back to the original deal that saw John Fredriksen take two dozen of Euronav’s VLCCs in exchange for his shareholdings and US$2.35Bn.

"FourWorld requests that all decisions of Euronav’s supervisory board and general meeting in relation to these transactions, as well as the transactions themselves, are declared null and void. In this regard, FourWorld has summoned all parties involved in these transactions, ie Euronav, CMB NV, Frontline plc, Famatown Finance Ltd, Hemen Holding Ltd and Geveran Trading Co Ltd," the statement from Euronav said.

Euronav also told its investors that the company had bought back more than 400,000 of its own shares on the New York Stock Exchange and on Euronext Brussels between 2-5 April 2024.