ATHENS: Fredriksen-led Frontline and its affiliate Frontline 2012 have agreed to merge to create one of the biggest tanker operating companies in the world. Frontline will survive the merger, with Frontline 2012 becoming the company’s wholly owned subsidiary.
To proceed, the merger requires that over 75% of voting Frontline 2012 shareholders and over 50% of voting Frontline shareholders vote in favour of the consolidation, as well as obtaining the requisite regulatory and customary closing approvals.
Voting will be conducted at special general meetings in the fourth quarter this year, after which the merger is expected to close as soon as possible. Hemen Holding Limited, a company indirectly controlled by trusts on behalf of John Fredriksen’s family, will vote in favour of the merger. Heman owns around 13% of the ordinary shares in Frontline, 59% of the shares in Frontline 2012 and Ship Finance International Limited, plus a 28% stake in Frontline.
Once the merger is completed, Hemen will own approximately 52% of Frontline; Ship Finance will own a 7% stake.
