AKER YARDS TAKES OVER YARDS IN GERMANY, UKRAINE

Oslo, July 29 - Aker Yards and FLC West have announced the approval of acquisition by FLC West of 70 percent shareholding in three shipyards in Germany and Ukraine. In its statement Aker yards said the transaction strengthens their financial capacity and improves the potential of the three involved yards.

Aker Yards ASA consists of 18 shipyards around the world. Last March 25, 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 specialized 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 specialized vessels.

As announced, 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 at 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 organization and in the facilities, as well as of the current and expected financial performance", says Ole Heggheim, Chief Financial Officer with Aker Yards.

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.