Frontline Ltd (FRO) has approached DHT Holdings, Inc. with a non-binding proposal for a possible business combination where Frontline would acquire all outstanding shares of common stock of DHT in a stock-for-stock transaction at a ratio of 0.725 Frontline shares for each DHT share, the company said in its press release.
The proposal is subject to usual and customary conditions for transactions of this nature.
Frontline, together with its affiliates, has also acquired 15,356,009 shares of DHT, representing approximately 16.4% of DHT's outstanding common stock based upon 93,366,062 common stock outstanding.
A combination of Frontline and DHT is expected to create the largest public tanker company by fleet size, market cap, and trading liquidity.