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    DeepOcean completes acquisition of CTC Marine Projects

    News // October 3, 2006

    DeepOcean ASA in Norway has completed the acquisition of the UK-based submarine trenching company CTC Marine Projects Ltd.

    The acquisition price, excluding debt, consists of an initial consideration of £45.8 million and a deferred payment of £14.2 million, which is dependent on future earnings in CTC Marine Projects.

    The initial consideration consists of 6,120,826 shares in DeepOcean with a value of approximately £12 million and a cash consideration of GBP 33,750,107.

    In accordance with the authorisation to increase the share capital of DeepOcean, registered with the Norwegian Register of Companies on May 23rd 2006, the Board of Directors in DeepOcean has resolved an increase in share capital of NKr 2 648 413 by the issue of 5 296 826 shares. The other consideration shares (824,000 shares) are owned by DeepOcean.

    All the consideration shares will be transferred to Charles Tompkins, whom accordingly will become the fourth largest shareholder in DeepOcean. The cash consideration is financed through a bond issue, a new bank facility and cash.

    Of the deferred payment, £10 million is conditional upon CTC Marine Projectís EBITDA in the financial year ending March 31st 2007 and £4,249,894 is conditional of the EBITDA in the financial year ending March31st  2008.

    In connection with the transaction, the DeepOceanís Board of Directors has resolved to serve a notice to the shareholders of DeepOcean convening an Extraordinary General Meeting for the purpose of considering, and if thought fit, electing Charles Tompkins to be a director of the board of DeepOcean.

    The Board of Directors also resolved to recommend the election of Charles Tompkins as a member of the board of DeepOcean.

     

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