EuropeFinance and InsuranceTankers

Frontline shareholders to vote on share capital increase and domicile change

John Fredriksen’s Frontline has invited shareholders to approve a transfer of corporate domicile and to vote upon a proposal to approve a share capital increase ahead of the takeover of Belgium-based tanker giant Euronav.

In a filing made to the Oslo stock exchange, Frontline said its shareholders will have their say at a special general meeting on December 20 on whether the company moves its domicile from Bermuda to Cyprus.

A vote will also be cast on a proposed increase of Frontline’s authorised share capital from $500m to $600m by the creation of an additional 100m ordinary shares.

“Frontline’s board of directors believes that the proposed increase will make available a sufficient number of authorised ordinary shares for future issuances, including financings, corporate mergers and acquisitions, use in employee benefit plans, stock splits, stock dividends or other corporate purposes,” the company said in a filing.

The redomiciliation is expected to be completed by December 31, 2022 or shortly thereafter following which Frontline’s shares will continue to trade on the New York Stock Exchange and the Oslo Stock Exchange under the existing ticker symbol FRO.

Frontline entered into a definitive merger deal with Euronav in July. After and “only if” the redomiciliation is completed, Frontline is expected to make a voluntary conditional exchange offer for all outstanding shares of Euronav at an exchange ratio of 1.45 Frontline shares for 1 Euronav share.

The authorised and unissued share capital of the new Cyprus-based Frontline will be used to settle the combination transactions with Euronav, which will be contemplated in a separate registration statement and other documents filed with the US Securities and Exchange Commission.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.

Comments

  1. definitiv merger deal…
    still very unprobable in my eyes.
    some problematic steps…
    – CMB could offer attractiv alternatives, especially for belgians, not to respond to frontline offer.
    supposed that 90% of shares are presented for voting, 45% could block everything, i guess.
    do , cmb would have to find another 21%, frontline 26%
    so cmb has to do an offer comparable to frontline… who offers only dilluted shares.
    offering 12$ cash and a share cmb-tech at introduction price 8$ CMBtech merged with euronav and fresh CMB capital… ). CMB recieving 25% of disiribution, allowing 2,4 B distribution, 1$ fresh from CMB, cmb-tech + CMBs euronav dividend and 0,8 B $ from euronavs cash… CMB-tech could redieve additional funding by introduction in stock exchange
    This is not a ‘plan’, just an idea to show opportunity…

Back to top button