OSLO (Bloomberg) — A Bermuda spin-off company from the world's largest oil-tanker company, as judged by capacity, Frontline Limited, has announced plans to merge with Dutch ship owner Dockwise.Sealift Limited, which is based on the Island and was spun-off from Frontline in January, has also sold $199.5 million of shares, it announced on Friday.

The company said it sold 39.8 million shares at 30 Norwegian kroner each, totalling 1.19 billion Norwegian kroner ($199.5 million).

"There was substantial demand" from investors in Norway and other countries, the company said in a statement distributed by the Hugin News Service.

The company said it will provide further background on the offering shortly.

Trading in the company's shares was suspended after they closed 2.4 percent higher on April 25 at 21.5 kroner in Oslo, valuing Sealift at 1.9 billion kroner ($320 million).

Two days earlier Sealift had it was holding "essential strategic discussions" with another company.

On Friday the company, that converts ageing crude tankers into oil-rig transporters, announced it will merge with Dutch rival Dockwise Transport NV.

Dagens Naeringsliv reported that Sealift was preparing to buy Dockwise, which is owned by UK buyout and venture capital firm 3i Group Plc.