Frontline Ltd. has today submitted the formal offer document relevant to its previously announced offer for shares in Mosvold Shipping Ltd. to the Oslo Stock Exchange. The offer document was, simultaneously, distributed to relevant brokers and the non-US shareholders of Mosvold Shipping Ltd.
Frontline Ltd. has reduced the number of preconditions for the offer as compared to its previous announcement. The preconditions are now as follows:
· that acceptances from shareholders receiving the offer representing in aggregate no less than 95% of their shares are received by the end of the acceptance period;
· that all material terms relevant to Mosvold Shipping Ltd.'s convertible loan agreement have been disclosed to the market in accordance with the regulations of the Oslo Stock Exchange.
Frontline has retained its right to waive either or both of these preconditions.
Frontline intends to approach the board of Mosvold Shipping Ltd. during the course of next week for the purpose of clarifying the board's position on the issues of:
· whether or not the board accepts that the offer made represents compliance by Frontline with the obligations set forth in Art. 42 in Mosvold Shipping Ltd.'s Bye-laws;
· whether or not the board intends to refuse to approve a transfer of more than 50% of the outstanding shares in Mosvold Shipping Ltd. to Frontline as per Art. 35 in the Bye-laws should Frontline receive acceptances which in aggregate exceed this level.
Frontline will also seek to obtain confirmation from the board of Mosvold Shipping Ltd. that the company has complied with its disclosure obligations in relation to the convertible loan agreement.
Following recent purchases Frontline now controls 11,298,708 shares in Mosvold Shipping Ltd. corresponding to 14.7% of the company's outstanding shares.