Frontline 2012 Shares Launched
Bermuda oil-tanker operator Frontline — which announced a major restructuring plan earlier this month — said a new company it intends to form completed a private sale of shares which raised $285 million.
Frontline, based in Hamilton, Bermuda, rose almost 11 percent to 21.88 kroner on the Oslo bourse today [Dec. 16] after the company said Frontline 2012, the new business, sold 100 million shares at $2.85 each to a group of institutional investors.
According to a report on the Bloomberg financial news netork, today’s sale remains subject to certain conditions and will be finalised on December 29.
On December 6, the world’s biggest operator of the largest oil tankers announced plans to split the company to withstand the worst rates since 1999.
The 2012 business will take control of the newest vessels as well as outstanding orders at ship yards.
Frontline Ltd. said today it is still negotiating with banks and counterparts to complete the restructuring by December 31 and cannot guarantee the plan will be successfully completed.
The shipping company, which redomiciled from Sweden to Bermuda in 1997, is now a world leader in the international seaborne transportation of crude oil, with one of the world’s largest fleets of VLCC and Suezmax tankers and Suezmax OBO carriers.
