On February 20, 2008, the Board of Frontline Ltd (“Frontline” or the “Company”) announced the distribution of a special dividend of 20% of the capital stock of the Company’s Bermuda subsidiary Independent Tankers Corporation Limited (“ITCL”) to Frontline’s shareholders. All non United States (“U.S.”) shareholders of Frontline, subject to certain exceptions, received one share in ITCL for every five shares they held in Frontline. Certain U.S. shareholders are also entitled to receive ITCL shares. The terms of the share distribution are set out in detail in the Company’s announcement of February 20, 2008. Holders of Frontline shares who will not be entitled to receive ITCL shares (“Cash Recipients”) will receive a cash distribution based on the market value of the ITCL shares on the over-the-counter market in Oslo (“Oslo OTC market”).
The record date for the share distribution was February 28, 2008. The share distribution to Fronline’s non-U.S. shareholders registered on Oslo Stock Exchange took place on March 6, 2008 (the “Distribution Date”). ITCL was registered on the Oslo OTC market on March 7, 2008. On the Distribution Date, a number of shares equal to the estimated Cash Recipients’ allotment were transferred to a VPS account at Nordea Bank Norge ASA, a VPS custodian. These shares have been sold on the Oslo OTC market over the first five trading days. The average share price (the “Cash Price”) determined as a result of the sales over these five days is NOK 8.78, equivalent to US$1.72 per ITCL share. Accordingly, each Frontline shareholder that is a Cash Recipient will receive US$ 0.34 per Frontline share.
The ex dividend date for Frontline on the New York Stock Exchange will be
March 14, 2008. The Cash Price is expected to be paid on or about March 26, 2008.
March 13, 2008