FRO - Frontline Euronav agree to $4B merger deal

Oil tanker shipping companies Frontline ( NYSE: FRO ) and Euronav ( NYSE: EURN ) said on Monday that they signed an all-stock merger deal , based on an exchange ratio of 1.45 Frontline shares for every Euronav share.

Based on Frontline's ( FRO ) $8.34 share price as of the market close on July 8, the proposed exchange rate represents a value of $12.09/share for Euronav ( EURN ).

The companies first announced their intention to merge on April 7.

The combined group will be named Frontline, incorporated and headquartered in Cyprus and will in addition continue to operate from various offices in Europe and Asia including Belgium, Norway, U.K., Singapore and Greece, with 146 vessels including 68 Very Large Crude Carriers.

The combined net revenue and EBITDA for the two companies in 2021 was $668M and $246M, respectively.

Changing trade patterns as a result of Russia's action should lead to higher rates for both crude oil tankers and product tankers, Tudor Invest Holdings writes in a bullish analysis posted on Seeking Alpha .

For further details see: