Norwegian shipping group Frontline (FRO)
said on Tuesday its board had approved the firm taking a 33 percent stake of a partnership buying four tankers from Bergesen valued at $321 million.
Bergesen on Friday made a preliminary agreement to sell four tankers to a consortium, Tankers International, led by Frontline.
"The remaining interest in the joint venture will be taken up by other partners in Tankers International," Frontline said in a statement.
"The ships will be financed through the joint venture and it is anticipated that Frontline's equity investment in the four ships will be less than $35 million," it said.
The deal included two tankers and contracts to build two new tankers. The sales price of the two tankers was $164 million, while the new contracts had a total value of $157 million.
The four tankers were part of a series of eight tanker projects that Bergesen acquired
from the Hitachi (HTHIY)
yard in Japan in January 2000.
Frontline said its board also agreed to buy the remaining 47.2 percent in a unit of Moseagle Invest K/S, which controls a VLCC tanker scheduled to be delivered from Samsung in Korea in November 2001.