DHT Holdings: Frontline Submits New Unimproved Offer

DHT Holdings Bermuda-based crude oil tanker firm DHT Holdings has received a new unimproved proposal from Frontline to acquire all of the outstanding shares of common stock of DHT in a stock-for-stock transaction. The company said that Frontline has again proposed a ratio of 0.8 Frontline shares for each share of DHT, which is the same exchange ratio contained in Frontlines previous proposal of February 24 of this year. Frontline delivered its proposal letter to Erik Lind, Chairman of the DHT Board, shortly after 4:30 pm New York City time, on April 25, and requested a response to the letter by 12:00 pm, New York City time, on April 26. Consistent with its fiduciary duties, DHTs Board will evaluate the proposal from Frontline, Lind said. He added that 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 DHTs fleet, market conditions and other developments that have occurred over the past two months. I note that, as has been the case with their previous proposals, Frontline is requesting a reply in an unreasonably accelerated timeframe in this case, less than 24 hours which does not permit for an appropriate and diligent review by our Board. We will respond in due course, Lind informed. Frontline, which submitted its earlier proposal on January 27, 2017, said that the proposed new combination of Frontline and DHT, which represented a 18% premium to DHTs volume weighted average price for the 10 days immediately prior to the opening market price on April 21, 2017, and 15.8% premium to the latest 30-day volume weighted average price, is expected to yield increased benefits. The combination would create the largest public tanker company by fleet size, market capitalization and trading liquidity, Frontline added.