John Fredriksen-controlled tanker owner and operator Frontline has filed a complaint in the Marshall Islands “to immediately enjoin portions of the unfair transaction documents” into which DHT Holdings has entered that would permit BW Group to establish 45% ownership of DHT.
Namely, the company previously demanded that the Board of DHT halts all efforts to enforce, give effect to or permit, “the poison pill arrangements” and allow shareholders of DHT the opportunity to consider and vote on Frontline’s latest proposal, submitted on April 25.
As DHT’s Board has not agreed to halt the restrictions imposed by the poison pill or to commence negotiations with Frontline on its proposed offer, Frontline opted to file the complaint on April 27.
Frontline has also sought an injunction as to the poison pill and other related anti-takeover defenses DHT has erected.
“We continue to urge the Board of DHT to negotiate in good faith with Frontline over its proposed offer, and not to contravene their duties to DHT’s shareholders. In doing so, we are exercising our rights as shareholders in DHT. We will continue to explore all courses of action available to us in order to ensure that all shareholders of DHT receive equitable treatment,” Frontline said.
The company today dismissed a related action it brought in New York on April 18, 2017, where the court previously held it did not have jurisdiction over DHT or BW Group.
In rejecting Frontline’s earlier request to the New York court for a temporary restraining order blocking the acquisitions, on April 19, 2017, the New York court ruled that the timing of Frontline’s request was “inexcusable”, in light of the fact that Frontline “had 18 days prior to April 18 to properly serve defendants and to attempt to marshal a case supporting jurisdiction over the defendants,” DHT informed.
DHT Holdings added that it believes that Frontline’s latest complaint “is similarly without merit.”