Frontline Ltd. announces that at its Annual General Meeting held on October 19, 1998, shareholders voted to approve the previously announced share consolidation.
As a result of the consolidation exercise, the Company's share capital will be consolidated into one new ordinary share of $2.50 par value each (the New Shares) for every ten ordinary shares of $0.25 par value each (the Existing Shares). Fractional entitlements resulting from the consolidation will not be issued but will be aggregated and sold and the net proceeds distributed in due proportion among those shareholders entitled thereto. The record date for the share consolidation is Friday, October 23, 1998 and it is intended that the consolidation of share capital will be effective from open of business in Oslo on Monday, October 26, 1998. The ratio of the Company's American Depositary Receipts (ADRs) which are traded on NASDAQ, will change from one ADR representing ten Existing Shares to one ADR representing one New Share.
The share consolidation will, in the opinion of the Directors of Frontline Ltd., lead to greater marketability of the shares and reduce the costs to the Company of administering the shareholding structure, which should benefit shareholders.