Frontline Ltd. & Frontline 2012 Ltd. Enter Merger Agreement - Quick Facts

(RTTNews) - Frontline Ltd. (FRO, FRO.L) announced the company and Frontline 2012 Ltd. have entered into an agreement and plan of merger, with Frontline as the surviving legal entity and Frontline 2012 as a wholly-owned subsidiary. The combined company will retain the Frontline Ltd. name.

Shareholders in Frontline 2012 will receive shares in Frontline as merger consideration. The companies said one share in Frontline 2012 will give the holder the right to receive 2.55 shares in Frontline. Frontline is expected to issue a total of approximately 584 million shares to shareholders in Frontline 2012 following cancellation of treasury shares held by Frontline 2012 and Frontline 2012 shares held by Frontline.

Following completion of the merger, Frontline will have approximately 782 million shares outstanding and it is expected that Frontline's current two largest shareholders, Hemen and Ship Finance, will own approximately 52% and 7%, respectively, of the shares and votes in the combined company.

After the merger is completed, the combined company expects to become one of the world's leading tanker companies with a total fleet of approximately 90 vessels. The combined company will continue Frontlines current three listings.