Euronav and Gener8 Maritime merger
Euronav (EURN) and Gener8 Maritime Partners’ (GNRT) merger should will close towards the end of 2Q18—subject to Gener8 shareholders’ vote. The merger will require approval from most of Gener8 Maritime Partners’ shareholders. If the deal is terminated under certain circumstances, Gener8 Maritime Partners might be required to pay $39 million as a termination fee to Euronav.
Details about the merger
In December 2017, Euronav and Gener8 Maritime Partners announced a stock-for-stock merger for all of Gener8 Maritime Partners’ issued and outstanding shares. After the merger, Gener8 Maritime Partners will become a wholly owned subsidiary of Euronav.
Euronav and the combined company will remain listed on the NYSE and Euronext under the ticker “EURN.” Euronav only operates crude tankers. Along with Euronav, Frontline (FRO), Nordic American Tanker (NAT), and DHT Holdings (DHT) are pure-play crude tanker companies—they only operate in one industry. Teekay Tankers (TNK) and Tsakos Energy Navigation (TNP) operate in the crude tanker and product tanker segment.
The combined company would operate 75 crude tankers—44 VLCCs (very large crude carriers) and 28 Suezmax crude tankers. The vessels’ total capacity would be 18 million deadweight tonnage. As part of the merger, Euronav decided to sell six of Gener8 Maritime Partners’ vessels.
The combined company’s balance sheet would have assets over $4 billion. The balance sheet would have marked-to-market leverage of less than 50% and liquidity of more than $750 million.