The tanker shipowner DHT Holdings rejected the acquisition proposal of Frontline. The John Fredriksen’s shipping company implied bid to exchange the 0.725 of a Frontline share for each DHT share, which assess them at 5.09 USD per share, representing a premium of 16% from Friday’s close. However, the DHT Holdings board unanimously rejects unsolicited proposal describing it, as wholly inadequate and not in the best interests of DHT or its shareholders. Among the considerations when reaching the conclusion, was also stated that the Frontline proposal would not properly value DHT’s contribution to a combined company.
“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. We are confident that DHT will generate significantly more value to shareholders as an independent company than the prospects afforded by this proposal”, said the Chairman of DHT, Erik Lind. “The execution of DHT’s strategic plan will continue to drive significant and sustainable value for DHT shareholders”, added he.
Frontline Ltd is the world’s largest oil tanker shipping company, based in Hamilton, Bermuda. Its primary business is transporting crude oil. As of 2008 the company had one of the world’s largest tanker fleets consisting of VLCC, Suezmax and Suezmax OBO carriers (82 tankers).