Frontline sells Sea Production stake

John Fredriksen-controlled tanker operator Frontline has sold its entire holding of 25,500,000 shares in offshore sector company Sea Production for about US$67 million. The company says the sale of the shares is in line with its strategy to remain a pure crude oil transportation company. The sale also follows the company's previously announced strategy to either sell or spin off the Sea Production shares to Frontline's shareholders. The shares were placed by the Investment bank Dahlman Rose to a group of high quality institutional investors. A statement says that Frontline and Sea Production will continue a strategic partnership with respect to conversion of crude oil tankers into oil storage and production units. Frontline is expected to record a gain of approximately US$31.8m in tQ2 as a result of this sale. In Q1 Frontline recorded a gain on the issuance of shares by Sea Production of US$39.8m. The company says: “The US$67m cash raised from the sale of the shares will increase the liquidity being available for further expansion of Frontline, as well as strengthen future dividend capacity.”