Tanker operator Frontline seeking to redomicile to Cyprus
A Bermudian-based shipping company is to hold a special general meeting on the island this month to seek shareholder approval for its redomiciliation to Cyprus.
Frontline Ltd, which is engaged primarily in the ownership and operation of oil tankers and product tankers, is to hold a meeting on December 20 at which shareholders of record as of November 7 will be entitled to vote.
If shareholder approval is granted, and other conditions are satisfied, the company said the redomiciliation is expected to be completed by December 31 or shortly thereafter.
Frontline said its board of directors has unanimously approved the redomiciliation.
The company said its shares will continue to trade on the New York Stock Exchange and the Oslo Stock Exchange under the existing ticker symbol FRO.
In a document filed with the US Securities and Exchange Commission, the company said: “Frontline believes that the redomiciliation will, among other things, provide legal, administrative and other similar efficiencies.
“As a well-established shipping and ship management centre, Cyprus is expected to provide many benefits to the company, including but not limited to recruitment of experienced commercial and administrative and management personnel, a comprehensive tonnage tax regime, approved by the European Union, and a geographically advantageous position between our key market time zones.”
The Bermudian-based organisation entered into a definitive combination agreement and plan of merger with Euronav NV of Belgium in July.
Once complete, the merger will create one of the largest oil tanker companies in the world.
The combined tanker fleet would include 69 very large crude carriers, 57 Suezmax vessels and 20 LR2/Aframax vessels.
Under the combination agreement, Frontline has agreed after the completion of the redomiciliation to make a voluntary conditional exchange offer for all outstanding shares of Euronav at an exchange ratio of 1.45 Frontline shares for 1.0 Euronav share with the intention that Frontline and Euronav shall initiate a process whereby Euronav merges into Frontline with Frontline as the surviving entity.
In the SEC filing, Frontline said “the completion of the redomiciliation is a condition of launching and closing the tender offer and the merger”.