Aker ASA: Aker to acquire Akastor real estate portfolio
Aker ASA today announced an agreement to acquire eight industrial properties in Norway from Akastor ASA. The properties are valued at NOK 1 243 million, in an all-cash transaction. This agreement follows a competitive process run by Akastor.
Under the terms of the transaction, a wholly-owned subsidiary of Aker will acquire 100 per cent of the shares in the real estate companies in Akastor's portfolio that own the following properties:
- Tranby, Egersund, Ågotnes, Stokke and Sandnessjøen, all fully rented by subsidiaries of Aker Solutions ASA
- Dvergsnes (Kristiansand) and Midsund, both fully rented by subsidiaries of Akastor
- Grunnavågen (Stord), fully rented by Wärtsilä Norge AS
The properties will have a total annualised rent in 2015 of approximately NOK 86.5 million. The average remaining contract tenor of the leases is approximately 18.5 years. Six of the leases are guaranteed by either Aker Solutions ASA or Akastor ASA. The remaining two leases are with solid counterparties.
"It is important for Aker as principal shareholder to maintain control over production facilities that are of significance to our operating businesses," said Aker President and Chief Executive Officer Øyvind Eriksen. "The properties acquired from Akastor are important to the core businesses of Aker Solutions, MHWirth and Fjords Processing. The investment meets Aker's required rate of return and provides us with an additional source of upstream cash flow. Additionally, the transaction strengthens Akastor's cash balance. Thus, this is an investment that meets multiple strategic objectives for Aker."
Aker owns 70 per cent of the shares in Aker Kværner Holding AS, which in turn owns 40.3 per cent of the shares in Akastor. Additionally, Aker directly owns 8.5 per cent of the shares in Akastor, bringing its total equity interest to 36.7 per cent. Therefore, the agreement constitutes a related-party transaction. The transaction process was conducted at arm's length, in accordance with relevant regulation as well as in compliance with Aker and Akastor's own guidelines for related-party transactions. Fairness opinions were prepared for both parties and the transaction was approved by the Board of Directors of both Aker and Akastor.
The transaction is expected to close in Aker's fiscal fourth quarter of 2015, subject to approval by the Board of Directors of Aker Kværner Holding AS.
For further information, please contact:
Marianne Stigset, Head of Investor Relations
Phone: +47 24 13 00 66
Mobile: +47 41 18 84 82
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 907 84 878
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.