Euronav Shareholders to Receive $46 Million Following Court Ruling Against CMB
TL;DR
The court ruling means minority shareholders may receive a $46 million payout due to CMB's miscalculation, providing a financial advantage.
The Brussels Market Court retroactively increased the share value by at least $0.52, totaling an additional payout of $46 million.
The ruling protects minority shareholders and holds brazen bidders accountable, making the financial market fairer for everyone.
The court's findings are critical of CMB and Frontline's tactics, shedding light on the inner workings of high-stakes financial negotiations.
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The Brussels Market Court has ruled that Compagnie Maritime Belge (CMB) miscalculated the offer price of shares during its mandatory takeover of Euronav NV in February, leading to a court-mandated payout of $46 million to shareholders.
The ruling states that the value of each share should be increased by at least $0.52, affecting the 69.2 million shares tendered in March 2024 and potentially more if the public offer is reopened. The court found that CMB failed to account for special advantages worth $104 million granted to Frontline during the sale of Euronav's newest 24 very large crude carriers (VLCCs).
In its findings, the court criticized the negotiation process, noting that Euronav was excluded from discussions that should have involved all directly affected parties. The Brussels Market Court's decision represents a significant step in judicial protection for minority shareholders, signaling that exploitative practices will not go unchecked.
The case was enabled by the release of key documents following a U.S. court ruling in a related case brought by FourWorld Capital Management LLC. John Addis, Founder and Chief Investment Officer of FourWorld, highlighted the importance of the ruling in addressing the interests of minority shareholders. He argued that the actions of CMB and Frontline served their interests at the expense of Euronav and its shareholders.
The court has directed the Belgian financial regulator (FSMA) to re-examine the bid price, leaving open the possibility of further adjustments. This development paves the way for another legal challenge in the Antwerp Enterprise Court, where FourWorld seeks to unwind CMB's takeover of Euronav, the $2.35 billion fleet sale to Frontline, and the settlement of Euronav's arbitration claim against Frontline.
This case is scheduled for hearing in May 2026.
Curated from News Direct
