Announced the fusion of Frontline and Frontline 2012 on the wake of the positive course of the market tanker



Frontline 2012, the society constituted in 2012 from the shipowning group Frontline Ltd. guided and presided from the shipowner John Fredriksen in the within of own plan of restructure, considered a real one slowly for the survival from the totality of the analysts, it will make return to house.
Founded
30 December 2011 with the emission of 250 million dollars of actions, of which 10% bought by the Frontline Ltd. and remaining 90% from the holding ones of the group, the Holding Hemen, the new company had initially had a equipment of 15 tankers, of which you are VLCC, four Suezmax and others five new VLCC still to construct, all acquired from the parent company Frontline Ltd. for a declared fair market value pairs to 1,12 billion dollars, and had received also a equipment of 666 million dollars of debits towards the banks correlated to the acquired ships in exercise and order from the Frontline and other correlated financial 325,5 million dollars of obligation with the new constructions.

Today the dark moment of the market in which work the group appears behind and Frontline Ltd. and Frontline 2012 Ltd. they have announced to have agreed a plan of fusion for incorporation with Frontline Ltd. that it will absorb Frontline 2012. "With the fusion of Frontline and Frontline 2012 - it has emphasized John Fredriksen - we will give again to Frontline the company position leader of the field tanker. The consolidated society will have a great fleet and a solid patrimonial state that places it in condition for acquiring ulterior market shares through opportunity of acquisitions and consolidation. With the current positive phase of the market tanker and gainful hires - it has found Fredriksen - we consider that the consolidated company will confiscate meaningful returns. The intention is to pay the surplus of liquidity like dividends on decision of the board of directors".

With the fusion the Frontline group will altogether have a fleet of 90 ships, of which 25 VLCC, 17 Suezmax, 16 product tanker MR and 10 Aframax LR2, included 20 ships currently used within contract of Time charter or in business management. Moreover it will have a program of new constructions comprising approximately 22 ships in delivery within 2017.

Second the forecasts, to happened completion of the fusion the two main shareholders of Frontline, that is the Holding Hemen that is under responsibility of the Fredriksen family and that currently it stops 13% approximately of the actions of the Frontline Ltd. and 59% approximately of actions of Frontline 2012, and Ship Finance International Ltd., that which main shareholder has the Holding Hemen and that currently she possesses 28% approximately of the actions of the Frontline Ltd., they will stop respective 52% and 7% approximately of the consolidated society.