Euronav's Future Clouded By Takeover Bids: Analyst Sees Unchanged Takeout Price And Possible Privatization
Portfolio Pulse from Lekha Gupta
Stifel analyst Benjamin J. Nolan downgraded Euronav NV (EURN) to Hold from Buy with a lowered price target of $18.43. This follows the offer by Compagnie Maritime Belge (CMB) to acquire Frontline Plc's (FRO) 26.12% stake in EURN. The deal also involves FRO acquiring 24 VLCC tankers from EURN's fleet. Post closure, CMB will own 49.05% of EURN's outstanding shares and is expected to make a mandatory public takeover offer. Nolan expects EURN to become private in the coming quarters.
October 10, 2023 | 7:17 pm
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NEGATIVE IMPACT
Euronav NV has been downgraded to Hold from Buy by Stifel analyst Benjamin J. Nolan, with a lowered price target of $18.43. This follows CMB's offer to acquire Frontline Plc's stake in EURN, which could lead to EURN becoming private.
The downgrade by Stifel and the lowered price target could negatively impact EURN's stock price in the short term. Additionally, the potential privatization of EURN could also have a significant impact on the stock's liquidity and valuation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Frontline Plc's 26.12% stake in Euronav NV is being acquired by Compagnie Maritime Belge. The deal also involves FRO acquiring 24 VLCC tankers from EURN's fleet.
The acquisition of FRO's stake in EURN by CMB could have a neutral impact on FRO's stock price in the short term. However, the acquisition of 24 VLCC tankers from EURN's fleet could potentially boost FRO's operational capacity and revenues in the long term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80