U.S. court rejects Frontline's bid, BW-DHT deal good to go
The New York County Supreme Court's decision means that privately-owned BW Group, led by shipping tycoon Andreas Sohmen Pao, can proceed with the sale of 11 very large crude carriers (VLCCs) to DHT in exchange for DHT's shares.
"The transaction will proceed as planned, and in fact the first ship is being transferred to DHT today, and others will follow in quick succession," Carsten Mortensen, BW Group's chief executive, said in a email to Reuters.
DHT said in a separate statement that eight of the vessels would be delivered during the second quarter of 2017, with the final two to come in 2018.
Frontline had failed to establish that the New York court had jurisdiction over BW and DHT and failed to establish a probability of success of its claim that the transaction violated Delaware law, Justice Barry R. Ostrager ruled.
The timing of the lawsuit, filed on April 18, was also "inexcusable", he added, given that the BW-DHT transaction was scheduled to partly close on Thursday. ■
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