Frontline Heads for Marshall Islands High Court
The High Court of the Marshall Islands Court has agreed to hear Frontline’s request for a preliminary injunction against DHT Holdings on May 17, 2017. However, it has denied the company’s request for a temporary restraining order.
Frontline is seeking an order requiring DHT to set aside its poison pill and what it sees as improper takeover defenses that DHT has erected to entrench itself and its management against offers by Frontline and other third-party bidders, aside from BW Group.
Billionaire President of Frontline John Fredriksen is again trying to build the world’s largest public tanker company, with a fifth offer for DHT. Frontline currently owns 14.5 percent of DHT, and tried to acquire the company this week after a failed attempt in March. DHT struck a deal with BW Group to fend of the acquisition.
This week, Frontline approached the Board of Directors of DHT with a proposal which includes the ships already delivered and yet to be delivered by BW Group. The offer would be effected at an exchange ratio of 0.8 Frontline shares for each DHT common share. Frontline had given DHT 24 hours to consider the deal.
“We continue to urge the Board of DHT to negotiate in good faith with Frontline over its proposed offer, for the benefit of all DHT shareholders and consistent with the Board's fiduciary duties. We will explore all available courses to ensure DHT shareholders receive equitable treatment,” said Frontline in a statement.
A copy of the High Court's order is attached to DHT's Current Report on Form 6-K here.