Akastor ASA's (OSE: AKA) Managed Pressure Operations Pte Ltd (MPO), a former Akastor owned company, has recently received an arbitration award from the London Court of International Arbitration (LCIA) whereby MPO is found liable under a project originally initiated in 2012 and where delivery was agreed to take place in 2014. The arbitration proceedings initiated in 2016 have now led to a disappointing result which will impact Akastor's financial results. The arbitration matter is subject to confidentiality undertakings.
In 2016 MPO was transferred from Akastor to AFGlobal Corporation (AFGlobal), pursuant to which Akastor remains responsible towards AFGlobal in respect of the financial outcome resulting from the arbitration matter. Final financial impact for Akastor is currently uncertain as it is dependent on inter alia the enforcement of the award against MPO. Maximum financial impact for Akastor is USD 29 million, of which USD 6 million already has been accounted for.
Akastor aims to clarify its financial exposure relating to the arbitration result in collaboration with the involved parties as soon as possible.
There are no other ongoing disputes or contracts of similar nature in the Akastor portfolio of companies (current and sold) which is expected to have material financial impact for Akastor.
For further information, please contact:
Chief Financial Officer
Mobile: +47 917 86 291
Akastor is a Norway-based oil-services investment company with a portfolio of industrial holdings and other investments. The company has a flexible mandate for active ownership and long-term value creation.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Akastor ASA via Globenewswire