Euronav: CEO Hugo De Stoop steps down 'with immediate effect'

During Mr De Stoop’s time at Euronav, he was an architect of the company’s dual stock exchange listing, saw the company through IMO’s sulphur cap fuels transition, the Covid-19 crisis (and its sub-crises of crew changes and crew welfare) and related historic fall in the crude oil price and oil demand, erratic tanker demand following the 2022 invasion of Ukraine by Russia, and a nearly year-long merger turned takeover battle for control of the company’s future in 2022 and early 2023.

The reference in Mr De Stoop’s departure announcement to Euronav’s new Supervisory Board takes in the recent addition of John Fredriksen, who formally pursued a merger with Euronav for most of 2022 and has eyed the company for many years.

Through his private companies and family interests, Mr Fredriksen is a key shareholder in tanker operator Frontline and signalled his intentions by taking a stake in Euronav in October 2021.

In April 2022, Frontline and Euronav announced they were in the later stages of a merger – the respective boards of directors agreed a term sheet on a potential stock-for-stock combination between the two companies, based on an exchange ratio of 1.45 FRO shares for every EURN share resulting in Euronav and Frontline shareholders owning approximately 59% and 41% respectively of the combined group.

The announcement stated the combined group would continue under the name Frontline and continue to operate from Belgium, Norway, the UK, Singapore, Greece and the US, and that Mr De Stoop would head the group as chief executive.

A conflict between the old and new shareholders of Euronav ensued. In December 2022, Saverys family-controlled Compagnie Maritime Belge (CMB), which had grown its stake as Euronav’s largest shareholder to more than 25% through buying sprees that were matched by John Fredriksen’s group of companies, called for the termination of the proposed Euronav-Frontline combination in an open letter to Euronav’s supervisory board.

Signed by CMB chief executive Alexander Saverys, the CMB letter to Euronav cited a November 2022 interview in which Mr De Stoop likened the Saverys position if they retain their Euronav stake in the wake of a future successful combination of Euronav and Frontline to being locked in a ’gilded prison’.

"Instead of threatening your shareholders with a prison sentence, you should focus on the creation of long-term value for all stakeholders and seek a solution through a constructive dialogue with your largest shareholder," the CMB letter said.

As 2023 dawned, Euronav’s potential merger with Mr Frederiksen-owned Frontline tankers appeared to have derailed after Frontline terminated a merger plan that had been underway for months. Euronav’s board disputed that decision, calling it ’unilateral’, and said it would consider a legal response.

Meanwhile, CMB, which opposed the merger, had taken the opportunity to call for a change in leadership and replacement of the existing Euronav board at an upcoming extraordinary general meeting.

That leadership change did not fully materialise as Euronav’s shareholders struck a compromise deal that saw two representatives each from CMB and Mr Fredriksen’s company’s added to the Euronav board.

The company’s plans reach a new stage with the official addition of Mr Fredriksen to the Euronav Supervisory Board on 17 May 2023 and the 16 May 2023 announcement of the departure of Mr De Stoop.

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