Frontline foiled in bid to block DHT deal with BW Group

APRIL 20, 2017 — DHT Holdings, Inc. (NYSE:DHT) today reported that it has taken delivery of the DHT Utik, the first of nine Very Large Crude Carriers (VLCCs) and two VLCC newbuild contracts it acquired from BW Group Limited.

The news was likely particularly galling for John Fredriksen. His Frontline Ltd has been rebuffed in its efforts to take over DHT and filed a last minute suit in New York State Supreme Court seeking a preliminary injunction and temporary restraining order enjoining the transaction that will see DHT acquire BW's fleet of 11 VLCCs, including two newbuilds, for $538 million with Singapore-headquartered BW taking a 33.5% stake in DHT as part of the deal.

Yesterday, New York State Supreme Court Judge Barry R. Ostrager ruled against Frontline Ltd.

In his ruling, Judge Ostrager wrote:

"The familiar standard for the issuance of a preliminary injunction and/or temporary restraining order is (a) likelihood of success on the merits; and (b) irreparable harm and (c) a balance of equities tipping decidedly in favor of the moving party.

"It is axiomatic that a Court cannot issue an injunction against parties against whom it has no jurisdiction. Plaintiff has failed to establish either that the defendants were properly served or that the Court has jurisdiction over the defendants. Moreover, all the equities tip decidedly in favor of the defendants given the inexcusable timing of plaintiff's filing. Plaintiff had 18 days prior to April 18 to properly serve defendants and to attempt to marshal a case supporting jurisdiction over the defendants. For these reasons alone, the motion for a preliminary injunction and temporary restraining order must be denied."

Want more background on the judge's ruling? You can download it HERE

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