Financing for Kværner share purchase

Company News - July 28, 2000

In response to an enquiry from the Oslo Stock Exchange concerning the financing of Aker Maritime's purchase of shares and subscription rights in Kværner last week to a total value of NOK 2.6 billion, the company has provided the following information.

To meet the first parts of the settlement, to a value of around NOK 650 million, Aker Maritime is drawing on its liquidity reserves and bills.

Payment for subscription rights amounts to NOK 165 million of this and has already been made. The rest of the amount is due in a week.

As has already been made known, the largest single tranche of shares in Kværner is to be purchased from Bergesen for just over NOK 1 billion.

As Bergesen has already stated, this transaction will be concluded by 12 October at the latest.

The remaining share purchases announced last week are bridge financed through a variable strike option programme.

The options will be exercised on 22 December at the latest, but can be called by Aker Maritime at any given time prior to this.

The shares subscribed in Kværner's ongoing share issue will be bridge financed in a similar manner.

These arrangements provide Aker Maritime with the financial flexibility and time to secure an optimal long-term financing of the acquired shares in Kværner.

Aker Maritime's financial situation is good. At the end of the first quarter the group's equity ratio was 29.8 per cent. On completion of debt financing of the share purchase, the equity ratio is estimated at 22 per cent.