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    P&O sells stake in IOS to Farstad

    News // June 6, 2003
    Farstad Shipping ASA has, on behalf of its subsidiary Farstad Supply AS, signed a Memorandum of Understanding with P&O for the purchase of P&O's 50 per cent share in P/R International Offshore Services ANS (IOS) and P&O's offshore supply management services in Melbourne.

    IOS, in which Farstad already had a 50 per cent share, has a fleet of 18 vessels, including two vessels on bareboat contracts. In addition IOS has two newbuildings for delivery in 2003. Except for two vessels, the fleet is trading the South East Asian and Australian market. In 2002 IOS had an operating income of NOK 509.2 million.

    The purchase price is 127 million Australian dollars, equivalent to approximately NOK 563 million. The gross investment for Farstad Supply is approximately NOK 1,000 million for the 50 per cent share.

    The parties intend to complete the transaction by the end of June. Farstad Shipping will establish a subsidiary in Melbourne, International Offshore Services Pty Ltd, to continue the operation of the fleet in the region. The new company will in additionhave representation in Perth, Singapore, Vietnam and the Philippines.

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