By Gwladys Fouche

OSLO, Feb 6 (Reuters) – Tanker agency DHT Holdings unanimously rejected late on Sunday the proposed deal by rival Frontline, managed by transport tycoon John Fredriksen.

Last week Frontline made a non-binding supply to accumulate all DHT’s excellent shares to create the most important personal tanker agency on the earth. {nFWN1FK06Q]

The “Frontline proposal is wholly inadequate and not in the best interests of DHT or its shareholders,” DHT Chairman Erik Lind mentioned in a press release.

“We believe that Frontline’s proposal substantially undervalues our company and represents an opportunistic attempt to acquire DHT at a low point in the cycle.”

Frontline, itself valued at $1.1 billion, proposed an all-share deal valuing the fairness in DHT at round $475 million. DHT additionally has curiosity bearing debt of some $685 million. Frontline already owns 16 % of DHT’s shares.

“We could see Frontline raising its offer, but doubt that it will be a substantial raise as we struggle to see Frontline wanting to acquire DHT substantially above the latter’s net asset value,” Fearnleys mentioned in a be aware to purchasers.

The DHT board mentioned the Frontline proposal didn’t correctly worth DHT’s contribution to a mixed firm and would end in an “unacceptable” dilution to DHT’s shareholders.

“The execution of DHT’s strategic plan will continue to drive significant and sustainable value for DHT shareholders,” mentioned DHT’s Lind.

Shares in Frontline have been up 0.54 % at 0848 GMT. DH Holdings’ closed at $4.91 on Friday. (Editing by Terje Solsvik)

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