Euronav Announces Acquisition Plans for CMB.TECH

Euronav NV, in conjunction with its controlling shareholder CMB NV, has formally entered into a share purchase agreement for the complete acquisition of CMB.TECH NV at a cash price of USD 1.150 billion, as disclosed in the company's recent announcement. CMB.TECH is a diversified cleantech maritime group recognized for its extensive involvement in building, owning, operating, and designing large marine and industrial applications. These applications are powered by dual-fuel diesel-hydrogen, diesel-ammonia engines, and monofuel hydrogen engines.

CMB.TECH's activities span the entire hydrogen value chain through its four distinct divisions: Marine, Technology & Development, H2 Infra, and Industry. The crux of its strategic approach lies in the creation of value through a "future-proof" fleet, comprising 106 low-carbon vessels, with an additional 46 vessels under construction. This aligns seamlessly with Euronav's overarching strategy of diversification, decarbonization, and optimizing its current crude oil tanker fleet.

The transaction underscores Euronav's commitment to recycling capital over time, shifting from older tanker tonnage to more future-proof, attractive, and diversified end-markets and contract types. Euronav's customer portfolio, strategically positioned in the heart of the energy transition, demands low-carbon tanker shipping services, making this acquisition a synergistic move.

The acquisition of CMB.TECH is deemed a related parties transaction under Belgian law and has received approval from the Euronav Supervisory Board based on the recommendations of the Committee of independent directors. Degroof Petercam Corporate Finance has been appointed as an independent financial expert to furnish a fairness opinion on the transaction's valuation.

CMB.TECH, functioning through its four divisions, is prominently recognized for its marine division, where it undertakes the construction, ownership, operation, and design of low and zero-carbon ships. These vessels encompass a variety of types, such as offshore wind support vessels, dry bulk vessels, container vessels, chemical tankers, tugboats, ferries, and others. The integration of drivetrain, storage, and bunkering of hydrogen and ammonia is managed in-house through an experienced engineering team in collaboration with Original Equipment Manufacturers and shipyards.

Regarding transaction specifics, the share purchase agreement was executed on December 22, 2023, with Euronav acquiring 100% of CMB.TECH shares for a total cash consideration of USD 1.150 billion. The purchase price will be funded through cash proceeds from the sale of part of the Very Large Crude Carrier (VLCC) fleet to Frontline, a transaction previously announced on October 9, 2023. The overall transaction includes a roll-over debt of USD 2.496 billion, covering existing financial debt of USD 510 million and nominal outstanding capital commitments of USD 1.986 billion. Of these capital commitments, USD 1.625 billion has been secured and will be rolled over, with payments scheduled over the next three years.

Euronav, an independent tanker company specializing in the ocean transportation and storage of crude oil, is headquartered in Antwerp, Belgium. With a fleet comprising 1 V-Plus vessel, 31 VLCCs (with three under construction), 22 Suezmaxes (with four under construction), and 2 FSO vessels, Euronav operates both on the spot and period market. The company is listed on Euronext Brussels and the NYSE under the symbol EURN.

CMB (Compagnie Maritime Belge) stands as a diversified shipping and cleantech group based in Antwerp, Belgium. The group owns and operates 150 vessels across dry bulk, containers, chemicals, and offshore wind. CMB's involvement extends to cleantech through CMB.TECH and real estate through MCA Facilities and Maritime Campus Antwerp. The group has a global presence with offices in Japan, Namibia, Singapore, China, Germany, the UK, and the Netherlands.