Frontline goes after DHT Holdings, this way or anotherStaff Writer | January 31, 2017
Frontline has approached DHT Holdings with a non-binding proposal for a possible business combination.
Approach 0.725 Frontline shares for each DHT share
The proposal is subject to usual and customary conditions for transactions of this nature.
Frontline, together with its affiliates, has also acquired 15,356,009 shares of DHT, representing approximately 16.4% of DHT's outstanding common stock based upon 93,366,062 common stock outstanding.
A combination of Frontline and DHT is expected to create the largest public tanker company by fleet size, market cap, and trading liquidity.
Assuming significant cost synergies are achieved, as well as superior access to debt and equity capital markets, Frontline believes a combined entity would generate significant free cash flow and maximize value for both companies' shareholders.
However, no specific arrangement has been reached, and there can be no assurance as to the certainty or timing of any potential business combination. ■