Akastor ASA (AKA), an oil service investment company, announced that it is in advanced discussions with Japan-based Mitsui & Co to further expand their current partnership to include AKOFS Offshore (AKOFS).
The parties have entered into a Memorandum of Understanding (MoU). As per the MoU, Mitsui, together with potential partners, will invest in AKOFS by purchasing 50% of the shares in the company to form a new 50-50 joint venture.
The Transaction is expected to result in an initial net cash release to Akastor of approximately USD 142 million for the shares in AKOFS, with a potential further cash release depending on earnings generated by the AKOFS Seafarer vessel in the coming years.
"We are pleased to have reached this important milestone and believe the transaction will provide a beneficial long-term ownership structure for AKOFS. The prospect of expanding our current partnership with Mitsui is exciting and we look forward to further developing the cooperation in the coming years," says Kristian Røkke, CEO of Akastor.
Through the Transaction, Mitsui will assume an active role in the further support and development of AKOFS together with Akastor as a long-term business partner.
The Transaction still remains subject to agreement on final terms and conditions, final due diligence, the entry of definitive agreements between Akastor and Mitsui and BoD approvals for all respective parties. Completion of the Transaction is expected to occur in Q1 2018.