Farstad concludes BOS Navegação dealCompany News // November 9, 2011
Referring to a July 2011 statement in which it announced that it would be acquiring Petroserv's 50 per cent share in BOS Navegação SA, Farstad Shipping says the formal aspects of the financial transaction are now set, and payment for the shares has taken place. The acquisition will be consolidated in Farstad Shipping's accounts as from 1 July 2011.
"Prior to the acquisition we have treated our 50 per cent share as a joint controlled operation in the accounts. This implies that our existing shares will also be adjusted in the accounts according to the values used in the acquisition of the remaining shares," said Farstad.
"This revaluation will be incorporated in the profit and loss accounts for the third quarter and implies an income of NOK 105.4 million. NOK 70.4 million of the amount will be booked as profit "by gradual acquisition", while the remaining NOK 35.0 million will be booked as a reduction of deferred tax."
"Further, the acquisition will result in a revaluation of NOK 89.0 million in the account of the three vessels owned by BOS, a goodwill of NOK 88.4 million and an allocation to deferred tax of NOK 30.3 million. The equity capital will increase by NOK 49.4 million."
The acquisition will improve Farstad Shipping's position in the Brazilian market. BOS was established in June 1999 as a joint venture between Farstad Shipping and Petroserv.