Frontline Ltd. (the "Company" or "Frontline") has on June 6, 2007 sold its entire holding of 25,500,000 shares in Sea Production Ltd. ("Sea Production") for a net price of NOK 15.75 per share, equal to approximately $67 million. The sale of the shares is in line with Frontlines strategy to remain a pure crude oil transportation company. The sale also follows the Company's previously announced strategy to either sell or spin off the Sea Production shares to Frontlines shareholders.
The shares were successfully placed by the Investment bank Dahlman Rose to a group of high quality institutional investors.
Frontline and Sea Production will continue a strategic partnership with respect to conversion of crude oil tankers into oil storage and production units.
Frontline is expected to record a gain of approximately $31.8 million in the second quarter of 2007 as a result of this sale. In the first quarter of 2007, Frontline recorded a gain on the issuance of shares by Sea Production of $39.8 million.
The $67 million cash raised from the sale of the shares will increase the liquidity being available for further expansion of Frontline, as well as strengthen future dividend capacity.
June 6, 2007
The Board of Directors
Questions should be directed to:
Bjørn Sjaastad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS