Bermuda-based crude oil tanker firm DHT Holdings has rejected Frontline’s offer to acquire all of the outstanding shares of common stock in DHT for a per-share consideration of 0.725 Frontline shares.

After a comprehensive review, conducted in consultation with its financial and legal advisors, the DHT Board of Directors concluded that the Frontline proposal “is wholly inadequate and not in the best interests of DHT or its shareholders.”

“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,” Erik Lind, Chairman of DHT, said.

Lind added the company is “confident that DHT will generate significantly more value to shareholders as an independent company than the prospects afforded by this proposal.”

The offer by the John Fredriksen-controlled tanker owner and operator was made last week when the company initiated discussion with DHT for a potential business combination.

Together with its affiliates, Frontline has also acquired 15,3 million shares of DHT, representing around 16.4% of DHT’s outstanding common stock based upon 93,366,062 common stock outstanding.