Frontlines main shareholder, Hemen Holding Ltd., has through associated companies acquired six ULCC vessels from the Greek ship owner Latsis.
It is the main shareholders intention to establish a separate company which will own the six ULCC vessels. In addition the two VLCC vessels FELLOWSHIP and FRIENDSHIP which are also controlled by Frontlines main shareholder will also be transferred to the same company.
To avoid a conflict of interest between Frontlines interests and the interests of the new company, the company to be established will be structured in such a way that all Frontline shareholders will be given preferential rights to subscribe capital in the new company.
The capital structure in the new company has as of yet not been decided on, but will be announced to Frontlines shareholders as soon as a decision is reached.
Oslo, September 24, 1997 Frontline Management AS
Tom E. Jebsen CFO
Contact person: Tom E. Jebsen, CFO, +47-23-11-40-00