Sevan: Divestiture May Not Happen This Year

As previously advised, Sevan Marine ASA has been considering spinning-off the Sevan Drilling business so that the drilling operations could become a separately listed company. The company said Thursday that, during the course of this process, it has idenfied a potential uncertainty in the Norwegian Company Act that relates to the application of certain capital requirements.

Pointing out that a spin-off of the drilling business could be treated as a taxable transaction, Sevan said that the listing may not take place in 2006. The potential uncertainty, however, will be eliminated next year and the company’s board intends to carry out the spin-off at that time. This time frame is within the 12-month period announced in connection with the Sevan Drilling private placement in March 2006.

Sevan Marine ASA is an offshore technology company specializing in the market for floating production and storage of oil and gas. The company has developed a new, cylinder-shaped platform type named SSP (Sevan Stabilized Platform), which is suitable for use in all offshore environments. Sevan Marine has its head office in Tananger, Norway, and branch offices in Arendal, Norway, and Rio de Janeiro, Brazil.

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