Belgian shipping company Euronav is to pay an additional 52 cents per share to US shareholder FourWorld Capital Management (FWC) due to a court decision on Friday night.
The information was confirmed on Saturday by FWC’s lawyer. Over recent months, the US shareholder group has consistently fought against this buyback offer in court.
The offer was a legal requirement, as the reference shareholder – the Belgian Saverys shipping family – owns more than half of Euronav’s shares. The buyback offer was valued at €16.58 per share, with this additional amount now due for FourWorld Capital (approximately €0.47 per share).
John Addis, Founder and Chief Investment Officer (CIO) of FWC, said that in accepting the recommendation of the Brussels Market Court, this FSMA decision "helps to protect the rights of overlooked minority shareholders".
"Although this is a victory for minority shareholders, we are disappointed the regulator has not used its expertise and specialist industry knowledge to complete an independent calculation of the true share value at the time of takeover. We must now consider whether to appeal on this matter," he said.
FWC owns 2.41% of Euronav shares, representing a significant sum. A complaint lodged earlier in the year claimed Euronav (Belgian Maritime Company – CMB) had provided "false and misleading information" regarding the Euronav purchase offer. The CMB had dismissed this complaint as "groundless".
In October, the CMB declared its intention to buy Norwegian shipowner Frontline’s shares in Euronav. The deal included the transfer of 24 Euronav ships to Frontline for $2.35 billion.
The CMB has long intended to diversify Euronav’s fleet to decrease its dependence on crude oil transport.
Frontline disagreed with this strategy, leading to a clash between the two shareholders that lasted for over a year. The CMB is expected to respond on Monday.
