Akastor ASA: Akastor and Mitsui create joint venture
Akastor ASA (OSE: AKA), an oil service investment company, announced today that
it has signed a Heads of Agreement with MITSUI & CO., LTD, a leading Japanese
trading and investment company, and its Japanese partner ("Mitsui"), to create a
joint venture with 50/50 ownership between AKOFS Offshore AS ("AKOFS") and
Mitsui. The joint venture will acquire both the Skandi Santos hull from DOF
Subsea Rederi AS and the Skandi Santos topside from AKOFS. The joint venture
will subsequently enter into a lease agreement with AKOFS corresponding to the
remaining contract duration between AKOFS and Petrobras. DOF Subsea will
continue to provide the ROV and marine services onboard the vessel as part of
the Subsea Equipment Support Vessel Contract with Petrobras.
Kristian Røkke, CEO of Akastor says: "We are pleased to announce this
partnership with Mitsui and are excited about additional joint business
opportunities currently being explored. This transaction will increase Akastor's
financial flexibility, while laying the groundwork for longer term value
creation together with Mitsui."
Geir Sjøberg, CEO of AKOFS Offshore adds: "Entering into a strategic partnership
is of great value to AKOFS. We now have a strong and dedicated partner that will
strengthen our commitment and relationship towards Petrobras even further. Our
ambition of operations excellency towards Petrobras remains firm and is shared
by our operating partner DOF Subsea."
Upon closing of the transaction, AKOFS will realize a cash gain of USD 66
million, net of investments in the joint venture. The annual bareboat charter
and related costs will increase by USD 8.5 million per year over the remaining
contract period. The contract with Petrobras for the operations in Brazil will
remain in a 100% owned subsidiary of AKOFS and will continue to generate
positive results over the contract period, also when considering the increased
bareboat charter rate. The transaction will result in an accounting gain of
approximately USD 19 million for Akastor, corresponding to half of the total
sales-gain of USD 38 million. The accounting gain is expected to be booked at
closing in Q4 2016.
The agreement is subject to Petrobras consent, bank approvals and certain other
conditions, which are expected to occur during Q4 2016. Arctic Securities is
acting as financial advisor in connection with the transaction and BA-HR lawfirm
as legal advisor.
For further information, please contact:
Tore D. Langballe
Head of Communications & Investor Relations
Mob: +47 907 77 841
This information is subject to the disclosure requirements pursuant to section
5 -12 of the Norwegian Securities Trading Act.