Financial Supervisory Authority turns TRS extension case over to Oekokrim
Following an investigation into a total return swap (TRS) agreement entered into by Aker ASA with exposure to shares in Aker Solutions ASA, the Financial Supervisory Authority informed Aker on 24 January 2013 that the case has been turned over to the economic and environmental crimes authority (Oekokrim) on the grounds of potential violation of insider trading rules.
Aker developed a strategy in the spring of 2013 to increase its investment in Aker Solutions. As a part of this plan, a TRS agreement was entered in April 2013 that increased Aker’s financial exposure to the company.
“This was a funding solution for Aker,” Aker Chairman and principal shareholder Kjell Inge Roekke said. “The extension of the TRS agreement in November 2013 was a continuation of the funding of a long-term investment, and therefore it was processed administratively. In hindsight, the choice of TRS as a funding solution was not ideal for such a long-term investment. We subsequently increased our exposure by buying more shares in Aker Solutions, an acquisition that was financed in a traditional manner.”
“Aker has given Oslo Stock Exchange and the Financial Supervisory Authority access to the documentation related to the procedure for the TRS agreement. Given the available information, we understand that Oekokrim wants to look at the judicial aspect of the case and Aker will of course assist and collaborate with the agency. We believe this extension does not represent a breach of insider-trading legislation. Should we nevertheless have done something wrong, the responsibility lies with me,” Roekke said.
After the media began asking questions about the TRS agreement, Aker immediately contacted Oslo Stock Exchange and began drafting a report for the exchange, without having been requested to do so. This report is included, as an attachment. (In Norwegian)
Aker has no further information beyond the fact that the case was turned over to Oekokrim and therefore does not know in what way insider trading rules potentially may have been breached.