Freighters Ltd. (LOF) have announced a deal for the proposed business combination.

Frontline has purchased about 67 percent of LOF's outstanding ordinary shares.

Frontline will then amalgmate with a wholly-owned subsidiary of LOF.

LOF has also announced the sale of three Panamax tankers to clients of Pegasus Shipping for $51.5 million. LOF will record a profit of about $30 million on the sale.

Frontline operates 24 ships most of them oil tankers, while LOF operates three Suezmax oil tankers.