Euronav Stock Surged 14% in Premarket Trading

Euronav Stock Surged 14% in Premarket Trading. Oil tanker groups Euronav and Frontline agreed to merge in $4.2B in all-stock deal.Belgian oil tanker group Euronav and Oslo-listed rival Frontline (NYSE:FRO) have agreed to merge in an all-stock transaction valuing the combined firm at $4.2B on a potential stock-for-stock combination between the two companies.

Euronav's shareholders will own 59% of the combined tanker group while Frontline's owners will hold the remaining 41%, they said in a statement.

The deal to create a global leader in the oil tanker industry.

The combined group will continue under the name Frontline and would continue to operate from Belgium, Norway, UK, Singapore, Greece and the US.

The combined group will be headed by Mr. Hugo De Stoop as the CEO and the board of the combined group is expected to consist of seven members, including three current independent Euronav Supervisory Board members, two nominated by Hemen Holding Limited and two additional new independent directors.

The two organisations would create a single best-in-class, highly competent and experienced team; enlarged fleet would enable the combined group to provide better service to customers on a global basis.

It is anticipated that Euronav will pay total dividends of up to 12 cents before the closing of the business combination with no impact on the exchange ratio.