Fosen Yards to Become a Part of Bergen Group
A Letter of Intent has been signed between the majority shareholder in Bergen Group, Magnus Stangeland, and the shareholders in Fosen Holding, concerning acquisition of 100 percent of the shares in Fosen Holding. The purchase price is fixed at NOK 200 million. The transaction, which will be a part of Bergen Group's announced listing on Oslo Bors, implies that the Fosen Yards will become a part of Bergen Group.
The yards will become part of Bergen Group's initiatives within special-purpose vessels for the offshore sector and other offshore installations, says CEO Roger Simmenes, who also states that the company want to utilise the presence in the Trondelag county to develop a design company for offshore/special-purpose vessels as well as an offshore/engineering department in the well-reputed technology competence environment in Trondheim.
Fosen Yards consists of two yards, Fosen Mekaniske Verksteder and Landskronavarvet in Southern Sweden. Together these yards have 310 employees, as well as (currently) 360 hired personnel. Four offshore vessels, as well as other offshore modules, are currently being built at the yards. Fosen Yards has a high competence within ship design with products of own development.
The majority shareholder in Bergen Group, Magnus Stangeland, has entered into a Letter of Intent with the shareholders in Fosen Holding, the parent company of Fosen Yards, to acquire 100 percent of the shares in the company. The purchase price for the shares is fixed at NOK 200 million.
The transaction will be a part of Bergen Group's announced listing on Oslo Bors. The company has been admitted for listing on Oslo Bors' main list, and the prospectus will soon be finalised. Further details of the transaction will be published in the prospectus. The listing at Oslo Bors will take place within 6 June 2008.
Fosen Yards fits well into Bergen Group's industrial plans. Bergen Group's offshore business consists of several units strategically located along the Norwegian coastline. The largest unit is Bergen Group Rosenberg, which is a major provider of technology to the oil and gas fields outside Southern Norway. At Hanoytangen outside Bergen the group invests to be able to handle large offshore projects. Bergen is also building up the activities in Northern Norway, with Kirkenes as the starting point.
With Fosen Yards onboard, our coverage along the Norwegian coastline will be complete and at the same time we get access to very a very skilled unit in Sweden, says the CEO. Our plan is to further develop the Swedish yards' competence as specialists within offshore modules. He also considers the location in the Trondheim area to be strategically important in view of the well-reputed technology competence in the region. We aim to develop a design company for special-purpose vessels and offshore installations in this area as well as an offshore/engineering department, he concludes.
Total order backlog for Bergen Group after the transaction will be NOK 11 billion. As of end 2007, the Bergen Group had an order backlog of NOK 5.7 billion.
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