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- Euronav has filed a registration form and appointed Deutsche Bank, JP Morgan and Morgan Stanley as book runners.
- This was expected, Euronav’s CEO has been hinting at an US-listing for quite a while.
- This could have a positive impact on the investment thesis as Euronav will receive more coverage and will have access to more financial resources.
- Euronav didn't go into hibernation after acquiring 15 VLCCs from Maersk, as it purchased another 4 vessels.
- The acquisition price of $85M per 3-year old vessel is higher than what the company paid for the Maersk acquisition.
- This means the current fleet could be undervalued on the company's balance sheet, as the market value seems to be higher than the book value.
- The company hints at more second-hand acquisitions.
- Euronav is up 38% since my first article on a smart acquisition.
- The company acquired 15 young VLCC vessels from Maersk shipping to rejuvenate its fleet and to become a dominant player.
- The oil tanker sector still is under severe pressure, but the oversupply should decrease.
- Traditionally, the summer season is weaker for oil tanker companies which could result in an opportunity to get in cheaper.
- However, I'm not too impressed with Euronav's decision to place discounted shares and an (extremely) high yield bond without giving the public a chance to participate.
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