US Judge Grants TRO on Aegean's HEC Deal

by Ship & Bunker News Team
Friday March 16, 2018

A request to put a temporary block on Aegean Marine Petroleum Network (Aegean) [NYSE: ANW]'s acquisition of port services company Hellenic Environmental Center (HEC) has been granted by a US court.

As previously reported, the action was taken by a group shareholders calling for change in the management of Aegean that, prior to the announcement of the HEC deal, had also put forward their own slate of candidates for election to the Company's Board of Directors at the next AGM.

Represented in the action by RBM Holdings LLC, the shareholder group say the deal would "result in the disenfranchisement and massive dilution of the current shareholders".

In granting the temporary restraining order this week, US District Judge Loretta Preska said the deal "does not meet the entire fairness test" due to a number factors including HEC's $300 million price valuation.

With the proposed deal set to close before the AGM, she also said the timing of the transaction is "highly suspect" and it is in the public interest to ensure that shareholders’ vote is sacrosanct."

For its part, Aegean says the deal will allow it to diversify its activities, and in the face of tough conditions in the marine fuel markets reduce its dependency on bunker-related sales.

Ship & Bunker News Team
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