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Saverys family grabs drivers at Euronav

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The three directors that the Saverys family had proposed to Euronav have been rejected. With additional directorships, the family hoped to put a stop to the planned merger with the Norwegian Frontline. That’s getting harder now.

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The Saverys family was unable to win at the general meeting of the tanker shipping company Euronav, where it is the main shareholder. The family wanted to appoint three new directors with Ludovic Saverys, Patrick De Brabandere and Norwegian banker Bjarte Bøe in order to gain more power. But none of the three got a ‘go’. To get its directors appointed, the family needed 50 percent plus one vote of the 250 shareholders present (or represented) at the general meeting. They stuck between 31.8 and 35.7 percent.

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Euronav also nominated directors and was more successful. American Steven Smith, a former banker at UBS and Credit Suisse, was appointed as the new director. In addition, the mandates of two other independent directors, Anne-Hélène Monsellato and Grace Reksten Skaugen, were extended for two years.

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Skaugen was subsequently named the new chairman to replace Carl E. Steen. He was not eligible for re-election after two terms.

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Euronav’s general meeting and the voting on the various agenda items went very smoothly and without major discussions. With about 50 in attendance, the turnout was not overwhelming. Euronav had moved to a larger venue than usual. With the exception of the three CMB directors, all agenda items were approved, including the payment of a gross dividend of $0.06 for the fourth quarter of 2021 and the first quarter of 2022.

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Opposition to merger

The appointment of the directors was the first hurdle for the Saverys family in its opposition to the merger of Euronav and Norwegian Frontline. As the largest shareholder, the family could propose three non-independent directors. With that, she hoped to get a majority on the board of directors to stop the merger plans.

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Saverys family owns 18.5 percent of Euronav

Euronav was co-founded in 1995 by the Saverys family and for many years was part of the family shipping group CMB, until the family decided in 2004 to float the oil tanker company separately. Two years ago, Saverco, the family’s investment holding company, surprised with the news that it had reduced its stake in Euronav to less than 5 percent. The family wanted to profit from a price increase, it sounded then.

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The merger plans with Frontline prompted the family to once again significantly increase its stake in Euronav. At the time of the announcement, the family again owned just over 13 percent of the shares. In the run-up to the general meeting, the family increased its stake in Euronav to 18.5 percent. That became clear on Wednesday a transparency statement.

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If the Saverysen manage to get more than 25 percent of the stock, they’ll have a blocking minority that could thwart the merger plans. Company law provides that for a merger at least three quarters of the shareholders agree must go.

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Whether the Saverys family will buy up to 25 percent remains to be seen. If they do that and thus block the planned merger, where are they? Euronav’s share price will then probably take a hit, so that their investment will be worth less. After the general meeting, Alexander Saverys, the CEO of CMB, declined to comment.

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Referendum

A final decision has not yet been made on the merger with Frontline. This requires a special general meeting, the date of which has not yet been set. 75 percent of the vote is needed to approve the merger.

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The general meeting was an opportunity to indirectly ask the shareholders for their opinion on the merger project. ‘Today’s conclusion is a bit of a referendum,’ said CEO Hugo De Stoop afterwards. It is a signal that a majority approves of the strategy and is in favor of the merger with Frontline.

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In the meantime, the merger is in full preparation. There will be more news in two or three weeks about how the operation will be realized: about the structure of the transaction, the process, the synergies, the headquarters…

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In all of this, Euronav will also talk to CMB. ‘That’s important, they are our largest shareholder.’ De Stoop is convinced that they have made ‘a fantastic investment’. When the merger plan was announced, Euronav’s share price skyrocketed. It is quite possible that this will happen again once the amalgamation is complete.

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“The idea of ​​the merger plan is to combine the number 1 player with the number 2 player. This creates a larger platform that controls approximately 10 percent of the tanker sector’, explained De Stoop. That size will make it easier to take the next step in the consolidation of the sector, he added. Euronav’s expansion therefore seems far from over.

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