John Fredriksen’s Frontline made an offer of 0.8 Frontline shares to each DHT share, which is the same as its second offer for DHT which was rejected in late February.
In March DHT did a deal with BW Group, which saw it taking over BW’s fleet of 11 VLCCs while the Singapore-headquartered owner took a 33.5% stake via $256m stock issue in DHT. The new offer from Frontline includes the vessels from BW so far delivered to DHT, and those yet to be delivered.
"We are convinced that the proposed new combination of Frontline and DHT will maximize value for both sets of shareholders. We believe that this outcome is in the best interests of shareholders of both companies and will seek to ensure that shareholders of DHT have an opportunity to consider our offer,” said Robert Hvide Macleod, ceo of Frontline.
Erik Lind chairman of DHT said: "Consistent with its fiduciary duties, DHT's Board will evaluate the proposal from Frontline.
"While the proposed exchange ratio of 0.8 reflects no improvement from the proposal our board previously considered and unanimously rejected, our board will carefully and thoroughly review the offer, taking into account the changes to DHT's fleet, market conditions and other developments that have occurred over the past two months.”
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