Aker Solutions Snaps Up Prospects for Further Growth in Energy Sector
Aker sells shares in four product and technology companies to Aker Solutions. These companies are industrial building blocks that expand
Aker Solutions' foundation for profitable growth in the offshore and energy sectors.
Aker Solutions is acquiring Aker's 46% stake in Aker Oilfield Services, 50% of Aker DOF Deepwater (formerly Aker DOF Supply), 33% in the listed technology company ODIM and 100% of the production company Midsund Bruk.
"With these transactions both Aker and Aker Solutions hit the accelerator. We have negotiated a powerful industrial solution. It is good for Aker because it focuses our resources on fewer key companies. It is good for Aker Solutions and the other companies involved because their technologies and products complement each other. It lays the ground for further profitable growth in Aker Solutions, in the crossover sectors between energy, environmental and maritime operations," said Oyvind Eriksen, President and CEO of Aker ASA.
Altogether Aker receives NOK 1 391 million for the shares included in the transactions. This generates an accounting profit of NOK 478
million in the second quarter of 2009. Aker is also reimbursed about NOK 207 million in shareholder loans from the companies that are
bought by Aker Solutions. These transactions are described in greater detail in the attached overview.
The total transaction sum, including transfer of shareholder loans will remain in the form of a seller's credit, with an earliest maturity on May 1, 2009. Aker Solutions intends to partly finance the acquisitions and future investments with a new bond issue. Aker has committed to buying NOK 1 billion of this bond, which will be marketed in the capital markets in April.
"In Aker, we have a tradition for finding solutions that create powerful units with a clear direction. This way, we contribute to demonstrate shareholder value that many may not see at first sight. Aker Solutions is today our largest industrial investment. As an active owner, Aker shall be a strategic engine in the development of robust and valuable operative businesses," said Eriksen.
In a separate deal, Aker and Aker Solutions have agreed that Aker Solutions in the future will be an equal owner with Aker of the carbon capture company Aker Clean Carbon. Aker Solutions increases its ownership stake from 30% to 50% through an equity
issue by the technology company at the same conditions as the company's previous issue.
In addition, Aker Ship Lease AS, a wholly-owned subsidiary of Aker, and AMC International AS, a wholly-owned subsidiary of Aker Solutions
AS, have entered a 10-year bare-boat charter agreement for a construction vessel (Aker OSCV 06 L, NB 718) currently being built by
STX Europe. Aker Ship Lease has bought related building contracts from Aker Oilfield Services for a price equal to the company's cost
price ahead of the transaction with Aker Solutions.
Aker and Aker Solutions have been particularly cautious in the negotiations about the companies in these transactions. This has been in accordance with best practice guidelines for transactions between two close parties. A third party, DOF Subsea ASA, is also a part in the transactions.
The agreements negotiated have been approved by the governing bodies of Aker and Aker Solutions, including Aker's audit committee, and DnB NOR Markets has analysed the transactions and provided a fairness opinion on behalf of Aker Solutions.
Arctic Securities was Aker ASA's financial advisor and Wikborg Rein was the legal advisor in these transactions.
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