Frontline Ltd. is pleased to announce the acquisition of five double hull Suezmax tankers en bloc from Top Ships Inc. at a purchase price of $240 million. The vessels are built in the period 1992 to1996, and will be delivered in the period June 2008 to August 2008. Frontline is also pleased to announce the agreement to take five double hull Suezmax tankers on time charter from Eigir Shipping for the balance period of existing charters, all with delivery June/August 2008 and redelivery November 2009/April 2010. The vessels are built in the period 1999 to 2006.
The acquisitions and chartering-in of the vessels will contribute to further consolidation in the suezmax market. This also confirms Frontline's regained position as the world's largest operator and owner of double hull Suezmax tonnage in addition to its position as the world's largest independent operator and owner of double hull VLCC tonnage.
Frontline's commitment to acquire the five double hull Suezmax tankers and to charter-in further five, confirms the Board's firm belief in the future prospects in the tanker market.
Chairman John Fredriksen says in a comment:
"We have for several months looked for ways to increase Frontline's exposure to the strong tanker market. Suezmax rates and values have lagged the VLCC development during the last months, and provide thereby better value. The two deals will increase Frontline's exposure in the double hull Suezmax market from nine to 19 units, in addition to its eight Suezmax newbuildings to be delivered in 2009/2010. The deals should be seen as an opportunistic investment approach where the first fixtures in the current strong market will take down the financial risks, while upside for shareholders remains significant."
Meanwhile, in a separate announcement, Frontline Ltd. said it intends to complete a private placement of 2.3 million new shares with an option to over-allocate up to a total of 3 million new shares. The Company will approach professional investors to test the market's interest following the close of the Oslo Stock Exchange today.
Frontline Ltd.'s largest shareholder, Hemen Holding Ltd., has guaranteed the subscription of 2.3 million shares.
The net proceeds from the private placement will, if successful, be used to finance the acquisition of the 5 double hull suezmax tankers which was announced this morning and in settlement of the delivery of shares in Overseas Shipholding Group Inc. currently controlled through forward contracts.
The shares in the placement will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of that Act. This press release does not constitute an offer to subscribe for the shares in the United States.
The acquisitions and chartering-in of the vessels will contribute to further consolidation in the suezmax market. This also confirms Frontline's regained position as the world's largest operator and owner of double hull Suezmax tonnage in addition to its position as the world's largest independent operator and owner of double hull VLCC tonnage.
Frontline's commitment to acquire the five double hull Suezmax tankers and to charter-in further five, confirms the Board's firm belief in the future prospects in the tanker market.
Chairman John Fredriksen says in a comment:
"We have for several months looked for ways to increase Frontline's exposure to the strong tanker market. Suezmax rates and values have lagged the VLCC development during the last months, and provide thereby better value. The two deals will increase Frontline's exposure in the double hull Suezmax market from nine to 19 units, in addition to its eight Suezmax newbuildings to be delivered in 2009/2010. The deals should be seen as an opportunistic investment approach where the first fixtures in the current strong market will take down the financial risks, while upside for shareholders remains significant."
Meanwhile, in a separate announcement, Frontline Ltd. said it intends to complete a private placement of 2.3 million new shares with an option to over-allocate up to a total of 3 million new shares. The Company will approach professional investors to test the market's interest following the close of the Oslo Stock Exchange today.
Frontline Ltd.'s largest shareholder, Hemen Holding Ltd., has guaranteed the subscription of 2.3 million shares.
The net proceeds from the private placement will, if successful, be used to finance the acquisition of the 5 double hull suezmax tankers which was announced this morning and in settlement of the delivery of shares in Overseas Shipholding Group Inc. currently controlled through forward contracts.
The shares in the placement will not be registered under the U.S. Securities Act of 1933 and will not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of that Act. This press release does not constitute an offer to subscribe for the shares in the United States.