The board of DHT said a comprehensive review has been conducted, in consultation with financial and legal advisors, and the conclusion is that Frontline’s takeover bid is wholly inadequate and not in the best interests of DHT and its shareholders.
Frontline had proposed to acquire all outstanding common shares in DHT at a ratio of 0.725 per shares in Frontline for each DHT share, representing a price of $5.09 per share or $477m in total value for DHT.
“We believe that Frontline's proposal substantially undervalues our company and represents an opportunistic attempt to acquire DHT at a low point in the cycle,” said Erik Lind, chairman of DHT.
“We are confident that DHT will generate significantly more value to shareholders as an independent company than the prospects afforded by this proposal,” Lind said.
In making its determination, the DHT board considered, among other things, that the execution of DHT's strategic plan will continue to drive significant and sustainable value for DHT shareholders; and the Frontline proposal would not properly value DHT's contribution to a combined company and would result in unacceptable dilution to DHT's shareholders.
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