Aker, FLC Transaction Complete

Tuesday, July 29, 2008

Aker Yards and FLC West have completed the previously announced transaction in which FLC West comes in as a 70 percent shareholder in three shipyards in Germany and Ukraine. The agreement has been approved by all relevant regulatory authorities. The transaction strengthens Aker Yards' financial capacity and liquidity, and it improves the potential for further development of the three involved yards. Aker Yards ASA has consisted of 18 shipyards around the world. At 25 March 2008, the group announced that it intended to take the Russian controlled company FLC West in as a majority shareholder in Aker Yards Ukraine Holding AS which owns the Okean shipyard in Ukraine and the shipyards in Wismar and Warnemünde in Germany.

The three yards focus on building merchant ships, increasingly with specialised technologies and with features for operations in arctic conditions. The co-ownership with the Russian FLC West creates opportunities to further pursue the growing Russian market for specialised vessels.
As announced in March 2008, the completion of the transaction has been subject to evaluations of debt and working capital. Based on this evaluation and a review of the business portfolio of the three yards, the final transaction price has been set to EUR 248.9 million. This provides a net gain of NOK 800 to 850 million compared to book value for Aker Yards, or approximately NOK 7.5 per Aker Yards share. In addition to FLC West's previous prepayments of EUR 50 million, FLC West has paid the remaining EUR 198.9 million as part of the completion of the transaction.
"We are pleased that we have now concluded this transaction. The transaction values reflect a balanced evaluation of the qualities, expertise and further potential in the organisation and in the facilities, as well as of the current and expected financial performance", says Ole Heggheim, Chief Financial Officer with Aker Yards.
The three involved yards has from first quarter 2008 been reported as discontinued business. The completion of the transaction will positively affect Aker Yards' third quarter financial results. A negative financial development in some of the projects in the discontinued business will have a negative effect on earnings per share for Aker Yards up until the third quarter 2008.
As part of the transaction, the parties have also agreed on an option for FLC West to acquire Aker Yards' remaining ownership in the three involved yards. If FLC West decides to make use of this option, the payment per share to Aker Yards will be at the level of today's transaction plus a minor premium.
Further details regarding the accounting effects of the transaction will be communicated at Aker Yards presentation of the second quarter financial results at 8 August.
 

Maritime Reporter July 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Bureau Veritas to Class, Certify FPSOs for Saipem

Bureau Veritas has been awarded a contract by Saipem to provide classification and certification services for the two Kaombo FPSOs for service off Angola. The

German Shipyard FSG Re-organizes Top Management

Flensburger Schiffbau-Gesellschaft (FSG) says it will be headed by a new management team from January 1st 2015, details as follows: Current Chief Technology

Bid to Rescue Clyde Shipbuilder Ferguson

Jim McColl, one of Scotland's richest men, has tabled a bid to rescue collapsed Clyde shipbuilder Ferguson and aims to return the yard to its former glory by creating hundreds of jobs,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1119 sec (9 req/sec)