OSLO, Norway, May 10, 2001 (PRIMEZONE) — Frontline Ltd. (Nasdaq:FRONY) has purchased 23,573,136 shares in Mosvold Shipping Ltd. at NOK 5.75 per share. The sellers are representatives of the Mosvold family, board members in Mosvold Shipping Ltd., and companies related to these.
Following this purchase, Frontline Ltd. is the owner of 38,798,844 shares in Mosvold Shipping Ltd. Frontline Ltd. has furthermore received acceptances of the offer for 809,205 shares bringing the total number of shares under Frontline Ltd.’s control to 39,608,044, representing approximately 51% of all shares outstanding.
Frontline Ltd. will, as a consequence of the latest purchase, increase the price per share in the offer to NOK 5.75. Frontline Ltd. has also decided to extend the acceptance period applicable to the offer for one week. The last date of acceptance will then be May 18, 2001, 16:00 hrs (4 PM).
Frontline has furthermore decided to lift the two subjects included in the offer.
Accordingly, Frontline will complete the purchase of such number of shares in Mosvold Shipping Ltd. as Frontline receives acceptances as a consequence of the offer.
As to the subject relevant to Mosvold Shipping Ltd.’s convertible loan, Frontline has noted that the board of Mosvold Shipping Ltd., in its press release dated May 8, 2001, confirmed that all price sensitive information relevant to the loan has been made public. Frontline Ltd. will base its purchase of shares in Mosvold Shipping Ltd. on this fact.
Frontline has noted that Mosvold Shipping Ltd. is of the opinion that Frontline will have to make another bid to purchase shares in Mosvold Shipping Ltd. pursuant to the rules set out in Chapter 4 of the Norwegian Securities Trading Act. Frontline Ltd. believes it will be the Oslo Stock Exchange which will have the final say in this issue as per Mosvold Shipping Ltd.’s bye-laws. Frontline Ltd. will thus discuss the matter with the Stock Exchange as it, in Frontline’s opinion, appears unnecessary and impractical to repeat a cash offer which already has been made. Should, however, the Stock Exchange require this, a mandatory bid will be made.
Frontline has noted with satisfaction that Mosvold Shipping Ltd.’s board is positive to calling for an extraordinary general meeting in the company to change bye-law 35(iii) and expect that a notice of this is given shortly. Frontline Ltd. assumes that the board will approve of the transfer of shares representing up to 50% of Mosvold Shipping’s outstanding shares to Frontline prior to such a general meeting, and that Frontline Ltd. will be allowed to vote these shares in the meeting.
CONTACT: Frontline Ltd., Oslo, Norway Tor Olav Troim, Director Tel.+47 23 11 40 00