The new firm would have a fleet of 69 VLCCs, 57 Suezmaxes and 20 LR2 or Aframax tankers. Image File/Pixabay
Oil tanker shipping companies First line and Euronav announced merger plans, in a major upheaval in the global tanker market.
The proposed share-to-share reconciliation is based on an exchange ratio of 1.45 Frontline shares for every Euronav share, Euronav said in a statement posted Thursday on its website.
The combined company would operate as Frontline, with the current CEO of Euronav Hugo deStoop as CEO. The new company would have a fleet of 69 VLCC, 57 Suezmax and 20LR2 or Aframax tankers.
“A combination of Frontline and Euronav would establish a market leader in the tanker market and position the combined group for continued creation of shareholder value in addition to significant synergies,” Frontline’s owner said. John Fredriksen said in the press release.
“The new Frontline would be able to offer value-added services for our customers and increase fleet utilization and revenue, which would benefit all stakeholders.
“I am very excited and give my full support and commitment to this combined platform.”
No indication was given as to when the proposed transaction might be finalized.